OFFICIAL PROCEEDINGS OF THE
CITY OF WEBSTER, SOUTH DAKOTA
Council room, City Hall, Webster, South Dakota, April 4, 2011, Mayor Mike Grosek presiding. Councilmen present: Roger Monson, Wally Pribyl, Jim Grimes, Wayne Klungseth, and Morgan Dorsett. Staff: Jennifer Wickre, Linda Hoberg. Reporter and Farmer: George Thompson. Others present: Wes Williams, Perry Althoff.
Motion by Monson, seconded by Pribyl to approve the minutes from the March 7, 2011, meeting. All councilmen voting aye. Motion carried.
Motion by Dorsett, seconded by Grimes to approve the following payroll and bills issued: Payroll (net) Admin. $3574.20, Liquor $3423.50, Library $2250.26, Street $5095.60, OT M. Eisenbraun $131.22, Police $9814.58, ST J. Coyle $73.62, T. Kiefer $89.76, G. Premus $76.94, A. Rohlf $69.74, Animal Control S. Hargis $49.23, Sewer $2890.66, D. Valsvig $82.93, Water $1887.22, OT A. Larson $158.68, City Hall $1946.26.
Claims: Dacotah Bank $31.83-service charge, SD State Treasurer $2510.86-sales tax, Postmaster $247.38-bulk mailing, SD Municipal League $128.00-District I Mtg, USDA Rural Development $8042.00-lagoon payment, A and S Hardware $167.03-supplies, Alco $55.83-supplies, Alltel $44.76-cell service, AFLAC $704.35-insurance, A-Ox Welding Supply $10.85-welding supplies, Auditor’s Office $147.36-postage and supplies, Brian’s Auto Body $286.55-parts and labor, Brown & Saenger $39.95-election supplies, Buhl’s of Britton $104.80-rug service, Butler Machinery $910.30-parts, Carlson & Stewart Refrigeration 416.12-labor, City of Webster $638.75-utility bills and employee prepayments, Clark Engineering Corporation $12127.56-lagoon planning, Cortrust Bank $2740.82, Dave Hahler Automotive $206.27-parts and labor, Dependable Sanitation $165.54-service, Detroit Industrial Tool $639.95-supplies, Don’s Repair $76.62-supplies, Duerre Excavation $1742.33-labor, Ellwein Brothers $30800.10-merchandise, Emery-Pratt Co. $283.55-books, Fiksdal Furniture $100.47-supplies, First National Bank of Sioux Falls $19634.71-SRF Loans, Galls $72.97-clothing, Gaylord Bros. $430.85-supplies, Hanten Repair $92.95-supplies, Hayes Excavation $600.00-grave openings, Health Pool of SD $21058.86-insurance, Randy Hinderks $33.60-supplies, Holmquist Construction $17044.62-labor, Hoverstadt’s Electric $194.00-supplies and labor, ITC $459.81-phone service, Johnson Brothers $12132.52-merchandise, Johnson Lumber $6.80-supplies, Wayne Klungseth $35.00-reimbursement, Lake Region Electric $149.85-airport lights, Light and Siren $54.68-supplies, Midcontinent Communications $182.13-internet and cable service, Midwest Living $19.97-subscription, Mike’s Jack & Jill $61.71-supplies, Milbank Communications $165.00-labor, Milbank Winwater $540.33-supplies, Newman Traffic Signs $157.72-signs, North Country Business Products $1623.24-credit card machine, Northland Auto $849.28-parts and supplies, Northwestern Energy $7468.50-utilities, Office Equipment $167.75-supplies, Porter Distributing $7838.90-merchandise, Prairie Auto Parts $459.39-parts and supplies, RDO Trust $280.29-parts, Reporter and Farmer $1329.37-legals and ads, Republic Beverage $10498.26-merchandise, Ringgenberg Electric $550.65-labor, Ryan’s Candy $176.61-merchandise and supplies, SD Department of Revenue $24.00-lab fees, SD Public Assurance Alliance $43765.84-insurance, SD Retirement System $6348.87-contributions, SD Supplemental Retirement $225.00-contributions, SD Unemployment $3546.73-insurance, SDML Workman Comp. $887.00-insurance, Sioux Valley Co-op $5238.79-fuel, Southside Repair $459.60-parts, Upstart $75.50-supplies, WEB Water $12642.90-water, City of Webster $100.00-apply bond, Payroll taxes $9241.20. All councilmen voting aye. Motion carried.
Motion by Pribyl, seconded by Dorsett to approve the Finance, Liquor and Police reports. All councilmen voting aye. Motion carried.
Wes Williams was present to request the ability to use the airport for the North Central Ultra Light Club’s Fly-In on August 5th through 7th. Motion by Pribyl, seconded by Klungseth to approve this request. All councilmen voting aye. Motion carried.
Motion by Pribyl, seconded by Monson to pass the following resolution setting fees and other designations:
RESOLUTION #138
A Resolution Setting Certain Fees and Charges For Services and Setting Other Designations Provided by the City of Webster
WHEREAS, City Ordinances require certain license fees, charges for services, and other designations to be established by resolution; and
WHEREAS, the City of Webster is required to have on file in City Hall a list of complete charges and designations;
NOW, THEREFORE BE IT RESOLVED THAT the City of Webster hereby establishes the following fees and other designations effective for the 2011 license year (fees are for the calendar year unless otherwise stated):
MISC.
Designate truck routes –Main, 1st Ave. East, 5th Ave. East, 4th St. E. from 1st Ave. to 5th Ave. (12-9)
Curfew-First Offense: Warning to the minor child(under the age of 16) and/or parent/guardian that curfew is being broken. Second Offense: $50.00 fine issued to child’s parent/guardian. Third Offense: $100.00 fine issued to child’s parent/guardian.(8-7-2)
Cost to replace blacktop when digging in water/sewer service-$4.00 sq. ft(11-6-6)
PERMITS AND LICENSES
Building Permits-values under $1000.are $5.00,values $1000. and over are $10.00(3-1-6)
Plumbing License-initial fee $60.00-renewal fee $10.00(9-2)
Electrical License-initial fee $60.00-renewal fee $10.00(4-1-3)
Special Malt Beverage License-$50.00 (7-1-2)
Garbage License-yearly-$250.00 per year-resolution to set rates-notify City(6-7)
Junkyard Licenses-to be determined
Bicycle Licenses-$2.00(7-6-1)
Permits for excavations-one call takes care of
Permit for slaughter house and penalty-to be determined(6-3)
Going out of Business Sale-$50.00 license-fine of $100.00(7-7)
FINES AND FEES
Fine for hindering fireman and driving over fire hose-$50.00(5-2-1, 5-2-2)
Fine for violating health orders-to be determined(6-2-2, 6-3-6)
Penalty for garbage nuisance-$50.00 plus dumping fees (6-5-7)
Fine for not removing doors and locks on refrigerator or freezers-$25.00 (6-9-1)
Fine for not removing noxious weeds-$50.00(6-10-5)
Fine for not removing trees with Dutch Elm Disease-costs of removal plus
$50.00 fine(6-11-6)
Fine for fireworks in city limits-$25.00(8-5)
Abandoned Vehicles-costs of removal-(8-6)
Fine for parking on designated streets overnight-$15.00(12-3)
Fine for illegal parking-$75.00 plus $5.00 each day delinquent(12-3)
Fine for open bottles or cans containing alcoholic liquor $25.00
Fine for violating firewood ordinance-$25.00 per day(12-7-24)
Fine for snowmobile violations-$100.00(12-8)
Costs of cleaning up properties by City(includes hauling demolished structures out and cleaning up junk on properties)-$200.00 minimum-over 1 hour $200.00 per hour per man(6-12)
DOGS AND CATS
Dogs and Cats-fail to license-$25.00(7-3-1)
Dogs-at large or barking-First Offense $50.00-Second $100.00-Third $150.00(7-3-6 and 7-3-7)
Dog and cat licenses-$2.00 Unspayed female $3.00
WATER AND SEWER CONNECTION FEES
Water Connection Fee (to the Main) $125.00 (10-2-5)
Water Re-connect Fee $15.00(10-2-26)
Sewer Connection Fee(to the Main) $125.00(10-1-1)
Non-Resident user Fee $30.00 per month(10-1-10)
CEMETERY FEES
Cemetery Sale of Lots (6 to a ½ lot) $250.00
Burials $400.00
Cremains $ 50.00
Saturday or Sunday Services $ 50.00 extra
MOWING AND SNOW REMOVAL COSTS
Costs of mowing lawns by City-$200.00 minimum-over 1 hour $200.00 per hour (6-10-4)
Costs of removing snow from sidewalks by City-$50.00 minimum-over 1 hour $50.00 per hour(11-3-3)
RECREATION FEES
Pool Fees $65.00 for family pass, $40.00 for single pass, lessons $20.00 per child, $15.00 per child with season pass. General Admission-$1.50 for children 6-17 years old, $2.00 adults.
Golf Fees
Memberships Family: $303.74 + $21.26 tax = $325.00
Couple: $257.01 + $17.99 tax = $275.00
Individual: $186.92 + $13.08 tax = $200.00
High School/College: $84.11 + $5.89 tax = $90.00
Grade/Middle School: $65.42 + $4.58 tax = $70.00
Social: $46.73 + $3.27 tax = $50.00
Carthouse Rental Gas: $93.46 + $6.54 tax = $100.00
Electric: $116.82 + $8.18 tax = $125.00
*Trail Fee: $32.71 + $2.29 tax = $35.00 for 2011
$50.00 for 2012
*For all people with carts.
Punch cards for member guests 5 Punch: $50.00
10 Punch: $80.00
Green Fees
All Days
9 Holes $15.00
18 Holes $20.00
Car Rent
9 or 18 holes $15.00
Trail Fee – Daily $5.00
Fee to rent clubhouse $50.00 per day
Campground Fees
Per day $12.50
Per Week $60.00
Per Month $175.00
Adopted this 4th day of April, 2011.
________________________________
Mayor
Attest:
_______________________________
Linda Hoberg, Finance Officer
All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Dorsett approving the second reading of Ordinance #466 as follows:
Ordinance #466
An ordinance granting to NorthWestern Corporation, its successors
and assigns, the right to occupy any of the streets, alleys, or public
places of the City of Webster, South Dakota, for the purpose of
transmitting or distributing natural gas.
BE IT ORDAINED by the City of Webster, South Dakota:
Section 1. The right is hereby granted to NorthWestern Corporation, its successors and assigns, to occupy any of the streets, alleys, or public places of the City of Webster, South Dakota, for the purpose of transmitting or distributing natural gas for a period of 20 years from the 4th day of April, 2011, provided, however, that the right herein granted will not be exclusive.
Section 2. NorthWestern Corporation will be liable for all damages due to its negligence in constructing, operating, or maintaining its natural gas system within the City of Webster, and shall at all times hold the City of Webster harmless from any and all liability arising out of NorthWestern Corporation’s negligence.
Section 3. This ordinance shall not be effective unless NorthWestern Corporation files its unconditional acceptance of this ordinance with the Finance Officer of the City of Webster within 45 days after the publication of this ordinance.
APPROVED: April 4, 2011
(SEAL)
____________________________
Mike Grosek
Mayor of the City of Webster, South Dakota
ATTEST:
__________________________
Linda Hoberg
Finance Officer
Passed 1st Reading March 7, 2011
Passed 2nd Reading April 4, 2011
Publish: April 11, 2011
Effective: May 1, 2011
All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Dorsett approving the second reading of Ordinance #467 as follows:
CITY OF WEBSTER
ORDINANCE #467
AN ORDINANCE ALLOWING SUNDAY AND MEMORIAL DAY SALES
BE IT ORDAINED BY THE MUNICIPALITY OF THE CITY OF WEBSTER, DAY COUNTY, SOUTH DAKOTA that the following shall be added to Chapter 7-4 Intoxicating Liquors of the Webster City Ordinances:
7-4-4 The City of Webster authorizes on sale or off sale licensees to sell alcoholic beverages pursuant to SDCL 35-4-81 on Sundays except between the hours of two a.m. and seven a.m., and on Memorial Day except between the hours of two a.m. and seven a.m. Such sales can be for on or off sale pursuant to the license issued to the licensee.
This ordinance is declared to be for the support of the City Government and its existing public institutions and shall be in full force and effect from and after its passage and publication.
Approved and adopted this 4th day of April, 2011.
(SEAL)
__________________________________
Mayor, City of Webster
ATTEST:
__________________________________
Finance Officer, City of Webster
First Reading: March 7, 2011
Second Reading: April 4, 2011
Publication Date: April 11, 2011
Effective Date: May 1, 2011
All councilmen voting aye. Motion carried.
Motion by Pribyl, seconded by Dorsett to publish the 2010 Drinking Water Report. All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Pribyl to approve Barbara Tompkins, Marlys Clausen and Eloise Hortness as election workers and pay $9.00 hour. All councilmen voting aye. Motion carried.
Motion by Klungseth, seconded by Dorsett to set Monday, April 18th at 5:30 p.m. for a special meeting to canvass the April 12th election results. All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Klungseth to advertise for sealed bids for a season’s supply of hot and cold mix to be opened at 7:00 p.m. on May 2, 2011. All councilmen voting aye. Motion carried.
Kyle Richards, Jerry Bludorn, Sharon Schmidt, Jay Pereboom, Carl Pulvermacher, Wes Williams, Perry Althoff and Tom Sannes met with the council to discuss the new swimming pool. Councilman Dave Jesme joined the meeting by speakerphone. Mayor Grosek informed those present there are two options for opting out in order to obtain more money from property taxes. One option for the City is a resolution to opt out and that decision may be referred to a vote by petition. The other option is a resolution to opt out with a vote to be held with an election set by the council. Grosek informed those present that the city would be looking at a twenty year loan with an annual payment of $164,000.00, but with the fundraising efforts of W.A.V.E. and City commitment, the opt out amount could be lowered and the City would look at this each year. Discussion followed with the council and those in attendance with all parties in agreement that a new pool is needed. The motion for adoption of the following resolution was made by Pribyl, and seconded by Jesme, and upon roll call vote the following voting ‘aye’, Grimes, Jesme, Klungseth and Pribyl. Voting ‘no’, Dorsett and Monson. Motion carried.
ATTENTION TAXPAYERS:
NOTICE OF
PROPERTY TAX INCREASE
OF $164,000.00
RESOLUTION FOR OPT OUT
THE GOVERNING BOARD OF the City of Webster does state that the above said board is unable to operate under the tax limitation measure currently in statute. We therefore OPT OUT of such tax limitation in the amount of $164,000.00 starting with calendar year 2011 taxes payable in the calendar year 2012. This opt out will be for twenty years, which will be through taxes payable in the calendar year 2032. This action has been taken by the board and approved by at least a two-thirds vote of the board.
This decision may be referred to a vote of the people upon a petition signed by at least five percent of the registered voters in the district and filed with the governing body within twenty days of the first publication of this decision.
Unless this action is referred to a vote of the people and reversed by such vote, this resolution authorizes the county auditor to spread an excess levy to raise tax dollars in the above stated amount.
Signed__Mike Grosek__________________________ Mayor
__Jim Grimes___________________________ Councilman
__Wally Pribyl__________________________ Councilman
__Wayne Klungseth _____________________ Councilman
__David Jesme__________________________ Councilman
______________________________________ Councilman
______________________________________ Councilman
DATE_April 4, 2011__________
ATTEST:
_Linda Hoberg_________________
Finance Officer
7:00 p.m. This being the time and place for the opening of sealed bids for a skid steer loader. Carl Pulvermacher, RDO, Webster, was present for the bid opening. The following bids were received:
RDO Equipment Co., 901 W. Hwy 12, Webster, SD, 2011 John Deere 328D $37,000.00
HC Clark Implement, 4411 E Hwy 12, Aberdeen, SD, 2011 Bobcat S650 $31,200.00
Northside Implement, 14088 Hwy 25, Webster, SD, Gehl V270 $34,900.00
Northside Implement, 14088 Hwy 25, Webster, SD, Gehl 5640 $31,800.00
The bids were reviewed by the council but tabled with a motion by Monson, seconded by Pribyl to give the council more time to review the proposals. All councilmen voting aye. Motion carried. Further discussion on the bids will be held at the April 18th special meeting.
Motion by Pribyl, seconded by Monson to hire the following applicants at the swimming pool: Manager: Steve Hairgrove $9.25/hr. Lifeguards: Tarah Voss $7.75, Lisa Jorgenson $7.75, Kelli Meland $8.00, Bryce Sichmeller $7.50, Kelsie Somsen $7.50, Shala Larson $7.25, Brett Steiner $7.25, Courtney Somsen $7.25, Michael Bartos $7.25, Taylor Sinner $7.25. All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Dorsett to hire Bette Zenk as Baseball Coordinator for the 2011 season at the rate of $1,000.00. All councilmen voting aye. Motion carried.
Motion by Grimes, seconded by Dorsett to hire Kevin Schimmel as Softball Coordinator for the 2011 season at the rate of $500.00. All councilmen voting aye. Motion carried.
Motion by Klungseth, seconded by Monson to set the City Wide Clean-up for April 25th through April 28th. All councilmen voting aye. Motion carried.
Motion by Pribyl, seconded by Grimes to approve Justin Carlson attend the Water Distribution class and exam in Huron, April 19th through April 21st. All councilmen voting aye. Motion carried.
Motion by Monson, seconded by Grimes to approve the mayor sign the following bond resolution for the water meter project:
RESOLUTION NO. 140
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 Webster (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 City of Webster Water Meter 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 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 $387,400 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 $387,400 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 Webster, 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 Sections 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 Webster, South Dakota, this 4th day of April, 2011.
APPROVED:
CITY OF WEBSTER, SOUTH DAKOTA
_______________________ Mayor
(Seal)
ATTEST:
___________________________
City Finance Officer
Published:April11,2011 Effective: May 1, 2011
All councilmen voting aye. Motion carried.
Motion by Pribyl, seconded by Klungseth to donate $200.00 to the Cadette Girl Scout troop to purchase flowers for the “W” in the LREA lot. All councilmen voting aye. Motion carried.
The auditing firm of East, VanderWoude, & Grant will be here on April 25th to audit the City records for the year 2010.
Motion by Grimes, seconded by Monson to accept the fuel bid from Sioux Valley Co-op for the month of April as follows: Unleaded gas $3.599, #2 Diesel $3.799, #1 Diesel $3.985. All councilmen voting aye. Motion carried.
The following building permits were approved with a motion by Monson, seconded by Grimes:
Casey Baumgarn, 13 East 3rd Avenue, Garage $14,000.00
Duane Anderson, 814 West 3rd Street, Porch $3,500.00
Mary Kriech, 40 Southwestern Avenue, Dormer $4,000.00
All councilmen voting aye. Motion carried.
The council acknowledged a thank you from the Webster Area High School Music Department for the support received.
Motion by Monson, seconded by Klungseth to adjourn. Motion carried. Next regular scheduled meeting is May 2, 2011 at 6:30 p.m.
________________________________
Mike Grosek, Mayor
_______________________________
Linda Hoberg, Finance Officer
This institution is an equal opportunity provider, and employer.
Published once at the approximate cost of __________.