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Municipal Utilities Board July 10, 2023
City of Brookings
The regular meeting of the Municipal Utilities Board was held at 1:00 p.m. on Monday,
July 10, 2023, at the Utility building with the following members present: Bartels, Carruthers,
Hansen, Hawley, President Harvey and City Council Liaison Avery.
ADOPTION OF AGENDA
The agenda was adopted.
MINUTES
Minutes of the regular meeting held June 12, 2023, and the special meeting held June 26,
2023, were read and approved.
APPROVAL OF BILLS AND CLAIMS
Motion was made by Hawley, seconded by Carruthers that the following bills and claims
be approved. All members present voted in favor of the motion.
605 Custom Design LLC, Uniforms, $160.00; ABM Manufacturing LLC, Supplies, $410.00;
ABRA Autobody & Glass of Brookings, Vehicle Maintenance, $357.50; A-I Computer Solutions
Of Brookings Inc, Supplies, $69.98; Anixter Inc, Systems/Cabling Inv, $247.00; Appeara,
Supplies, $126.28; AT & T Mobility, PCS Phone Service, $9307.25; Austreim Excavating,
Gravel Blading, $1009.80; Authorize.Net, Credit Card Processing Fee, $170.20; Badger
Communications, Systems/Cabling Inv, $3888.26; Bally Sports North, Contract Fee, $8340.00;
Bendix Inc., Printer/Copier Maintenance, $1526.11; Bierschbach Equipment, Supplies,
$1153.24; Bluefin Payment Systems, Credit Card Processing Fee, $12512.47; Bobcat Of
Brookings, Supplies/Equipment Repair, $344.12; Border States Elec Supply, Supplies, $930.95;
Border States Elec Supply, Systems/Cabling Inv, $916.21; Border States Elec Supply, Uniforms,
$1256.50; Bowes Construction Inc, Asphalt, $2826.32; Bridle Estates, Sewer Charge
Reimbursement, $5249.00; Brookings Credit Bureau & Collection Agency, Delinq. Account
Collection, $322.03; Brookings Engraving, Supplies, $331.00; Brookings Engraving, Uniforms,
$17.00; Brookings Municipal Utilities, Office Utility Bill, $49945.35; Brookings Radio,
Advertising, $1750.00; Brookings Register, Advertising/Legals, $1016.00; Business Track,
Credit Card Processing Fee, $9022.55; BX Civil & Construction Inc, Dust Control, $716.80; C
& R Fire Suppression, Annual Fire Ext. Inspection, $3173.43; Calix Inc., Fiber Equipment,
$1374.30; Carquest Auto Supply, Work Equip Maintenance/Supplies, $11.99; Century Business
Products, Printer/Copier Maintenance, $1298.86; Century Link, Telephone Expense, $144.07;
City of Brookings, Naming Rights, $9539.00; City of Brookings, Contract Fee, $7198.01;
Climate Systems Inc, HVAC Maintenance, $2107.11; Clites Electric Construction, Inc.,
Systems/Cabling Inv, $21.64; Complete Plumbing Inc., Sump Pump Program, $499.81; Core &
Main, Sump Pump Program, $5583.10; Core & Main, Supplies, $12018.54; Corporate
Technologies, Support Agreement, $6976.39; Courtesy Plumbing Inc., Repair/Supplies, $291.70;
Courtesy Plumbing Inc., Sump Pump Program, $73.00; Creative Printing Inc., Printed Materials,
$816.93; Credit Collections Bureau, Delinq. Account Collection, $288.79; Custome Truck One
Source, Supplies, $367.52; Dave's Window Cleaning, Inc, Window Service, $74.00; Dept Of The
Treasury, Federal Tax, $5916.08; DGR Engineering Inc, Engineering Service, $560.00; DHE,
LLC, Maintenance Fee, $1196.63; Ditch Witch UnderCon, Supplies/Work Equip Maint,
$1202.65; Einspahr Auto Plaza, Vehicle Maintenance, $213.95; Electric Pump, Lift Station
Pump, $9973.25; Farmers Implement Irrigation, Work Equipment Maintenance, $282.83;
Fastenal Company, Supplies, $3041.01; Ferguson Waterworks #2516, Water Meters, $35425.00;
Fix It Shop Locksmith, Supplies, $25.00; Flow Control Automation, Inc., Mag Meter, $1174.00;
Foerster Supply Inc, Supplies, $787.92; Gacke Enterprise, Lime Sludge Removal, $16406.25;
GP Auto Service & Repair, Vehicle Maintenance, $272.13; Grainger, Supplies, $375.57; Gray
Media Group Inc, Contract Fee, $21105.87; Graybar Electric Company, Fujitsu Annual Support,
$7106.00; Graybar Electric Company, Supplies, $625.97; Graybar Electric Company,
Systems/Cabling Inv, $127.04; Gridor Const., Inc., Water Treatment Plant, $1832192.10; H & W
Contracting, LLC, SW/SE Interceptor Replacement, $1079141.57; Hach Chemical Company,
Supplies, $2522.00; Hawkins Inc, Chemicals, $4000.00; Helsper, McCarty, & Rasmussen, PC,
Legal Service, $4942.50; Hendricks, Bernard, Conserve/Demand Incentive, $30.00; Homestead
Do It Center, Supplies, $45.07; Hometown Service & Tire LLC, Vehicle Maintenance, $540.47;
Iconectiv, LLC, LNP Fee, $677.95; Interstate Telecommunications Cooperative, Telephone
Expense, $287.56; Jaymar, Printed Supplies, $446.86; John Deere Financial, Supplies, $100.13;
Kenner Plumbing Inc., Water Fountains, $5814.00; KorTerra Inc, Locate Ticketing Software,
$3500.00; Kruse, Dan, Travel, $70.80; Locators & Supplies, Sump Pump Program, $54.99;
Locators & Supplies, Supplies, $2749.50; Lowe's, Supplies, $20.86; Lumen, Telco Settlement,
$272.22; M & T Fire & Safety, Supplies, $1650.00; Martin's Inc, Diesel/Oil, $2228.45;
Matheson Tri-Gas Inc, Supplies, $258.75; Midcontinent Comm., Contract Fee, $679.44;
Midwest Fresh Catering, Meeting Supplies, $160.00; Millborn Seeds Inc, Grass Seed/Fertilizer,
$232.50; Millennium, Supplies, $885.00; Moss Adams LLP, Consulting Service, $3850.00;
MVTL Laboratories Inc., Wastewater Analysis, $726.99; Napa Auto Parts, Supplies, $53.27;
Nemitz, Terry, Conserve/Demand Incentive, $300.00; Nexstar Broadcasting, Inc., Contract Fee,
$10044.28; Niklason Masonary, Concrete/Supplies, $19214.76; Northwestern Energy, Natural
Gas, $10.71; Office Peeps Inc, Supplies, $103.24; One Source - The Background Check
Company, Employee Verification, $153.00; OneNeck IT Solutions LLC, Computer
Software/Consulting, $22925.59; Outlaw Graphics, Supplies/Decals, $87.50; Pests B Dead LLC,
Pest Control, $235.00; Pete Lien & Sons Inc, Chemicals, $4615.90; Prunty Construction Co, Inc,
Raw/Treated Water Pipelines, $101514.29; Prussman Contracting Inc, Equipment Rental,
$870.70; Prussman Contracting Inc, Main Repairs, $2073.82; RC First Aid, Supplies, $293.50;
RDO Equipment Co, Work Equipment Maintenance, $469.48; Resco, Supplies, $4842.40;
Rients, Shane, Travel, $35.40; Riverside Technologies, Inc., Computer Supplies, $29.00;
Riverside Technologies, Inc., Laptop, $1996.00; Robinson, Steve, Conserve/Demand Incentive,
$25.00; Ron's Auto Repair, Vehicle Maintenance, $156.72; Runnings, Supplies, $3806.85;
Schoon, Jacob, Travel, $53.10; Schoon's Pump N' Pak, Vehicle Gasoline, $13829.60; SD Board
of Accountancy, Membership Dues, $50.00; SD CPA Society, Membership Dues, $230.00; SD
Dept of Environ & Nat, Certification, $60.00; SD Dept of Rev, Enhanced 911, $8719.55; SD
State Treasurer, Communication Impaired Fee, $1856.75; SD Treasurer, Sales/Excise Tax,
$165282.28; SDN Communications, Circuit Lease, $2297.79; SDSU, Perform. Eval. W/WW,
$128063.00; SDSU Growth Partnership Ltd., Conserve/Demand Incentive, $10140.00; Sioux
Valley Environmental, Gas Monitor/Case, $2525.00; Sioux Valley Environmental, Supplies,
$171.00; South Dakota One Call, Locate Fee, $867.30; Springbrook, Credit Card Processing Fee,
$2599.50; Sprint PCS, PCS Phone Service, $149.06; Sturdevant's Auto Value, Supplies, $953.61;
Swiftel Communications, Office Phone Bill, $130758.54; Terex USA, LLC, Equipment
Maintenance, $9958.94; The UPS Store, Freight, $294.53; Thermo Fisher Scientific (Asheville)
LLC, Supplies, $7.37; Tires Tires Tires, Vehicle Maintenance, $346.00; Town & Country
Shopper Inc., Advertising, $175.00; Turfguard Lawn Service Inc., We ed Spraying, $1400.00;
U.S. Bank National Association, 2012 SRF Loan Payment, $397335.98; United Parcel Service,
Freight, $48.00; United States Postal Service, Postage, $9000.00; Universal Service Adm. Co,
USAC Contribution, $28151.88; University Estates, Water Charge Reimbursement, $3835.00;
USA Bluebook, Supplies, $510.51; Vantage Point Solutions Inc., Engineering Consulting,
$9554.62; Wesco, Meters, $59328.00; Wesco, Supplies, $26368.00; Wesco, Underground
Conductor, $9975.00; Wheeldon's, Equipment Maintenance, $40.00; Winter Contracting, LLC,
Raw/Treated Water Pipelines, $1262169.58; WW Tire Service Inc, Work Equipment
Maintenance, $80.20; Xcel Energy/NSP, Utility Bill, $14.02; ABRAHAMSON, PATRICIA,
Refund Check, $139.15; ALFSON, TROY, Refund Check, $246.70; ANDERSON, CHERYL &
ROBERT, Refund Check, $8.27; ANDERSON, CHRIS R & JESSICA, Refund Check, $509.99;
APLAND, KATHLEEN, Refund Check, $32.48; ASCHE, MATT, Refund Check, $73.38;
BAUMAN, CURT & SANDY, Refund Check, $69.59; BELROSE, JESSE, Refund Check,
$32.85; BERTRAM, LORI, Refund Check, $20.50; BESEMER, BRAD & BRITTNEE, Refund
Check, $115.36; BIGGAR, BRANDON, Refund Check, $168.62; BIGGAR, CRAIG & JODI,
Refund Check, $58.91; BINGEN, ERIK, Refund Check, $27.70; BORTNEM, GORDON,
Refund Check, $152.25; BRANDSRUD, CHERYL, Refund Check, $184.41; BROOKINGS
CHRISTIAN CHURCH, Refund Check, $165.75; BROWNELL, AMY & CRAIG, Refund
Check, $33.29; BRUNS, MARK, Refund Check, $1997.96; BUCKLEY, GENE & DEBRA,
Refund Check, $89.35; BULLINGTON, MARK, Refund Check, $155.10; CAMPBELL,
THOMAS R & DOREEN K, Refund Check, $184.56; CARPENTER, KARLA, Refund Check,
$149.99; CHAMLEY, MAKENZI, Refund Check, $11.01; CHURCH, TERRANCE &
KASTHURI, Refund Check, $34.58; CLARK, WENDY, Refund Check, $154.10; COOMBES,
DAN & SUSAN, Refund Check, $16.05; COON, TERRY & HEATHER, Refund Check,
$234.60; CURTIS, BYRON & TERESSA, Refund Check, $61.14; DAVIDSON, WILLIAM &
KHANH, Refund Check, $1057.28; DEJONG, ROBERT & KELLY, Refund Check, $170.62;
DIERCKS, BILL & RUTH, Refund Check, $107.61; EMMETT, PAM, Refund Check, $6.34;
FELDHUS, TERRI, Refund Check, $89.02; FIAMENGO, LAUREN, Refund Check, $572.18;
FIRST ASSEMBLY OF GOD, Refund Check, $2121.19; GEISZLER, HARRY & MELINDA,
Refund Check, $63.93; GEPPERT, JACKIE, Refund Check, $809.78; GOMES, BRETT, Refund
Check, $123.41; HABITAT FOR HUMANITY, Refund Check, $123.47; HACKETT, WILLIAM
& CONNIE, Refund Check, $57.69; HANSON, DAN & JUDY, Refund Check, $18.11;
HANSON, LINDSEY, Refund Check, $457.72; HARDT, MARY, Refund Check, $142.66;
HEILMAN, ROSE, Refund Check, $101.29; HEIN, TERRI & SCOTT, Refund Check, $72.88;
HICKS ENTERPRISE, Refund Check, $2183.84; HOBBIE, BOBBI & KEVIN, Refund Check,
$34.88; HOLM, JEREMY & TARA, Refund Check, $386.40; HOODA, DAVENDER & RILU,
Refund Check, $47.58; HOUTMAN, TIMOTHY & KRISTI, Refund Check, $274.55; JENSEN,
STEVE & KAMI, Refund Check, $101.33; JEWETT, MIKE & MICHELLE, Refund Check,
$58.46; JOHNSON, MARLYS, Refund Check, $74.96; JOHNSON, PERRY & BARB, Refund
Check, $40.30; JORGENSEN, BRENT & KELLI, Refund Check, $191.45; KEITH, ABIGAIL,
Refund Check, $94.74; KELLEY, VAN & SUSAN, Refund Check, $417.44; KENNINGTON,
BLAKE, Refund Check, $27.93; KILMER, WANDA DOOP, Refund Check, $398.59; KOCH,
DAVE, Refund Check, $141.04; KRUID, TYLER & MARICEL, Refund Check, $116.58;
LACHER-STARACE, JENNIFER, Refund Check, $192.03; LANAM, DONNA, Refund Check,
$56.36; LEE, HEATHER, Refund Check, $145.51; LIBRANDO, ERIK, Refund Check, $507.52;
LOUNSBERY, JEFF, Refund Check, $76.74; MARKER, STEVE & TRISH, Refund Check,
$297.17; MATHISON, PAULA, Refund Check, $134.46; MCCARTHY, STEVE & DAWN,
Refund Check, $128.05; MCCARTY, DON & ANNE, Refund Check, $263.80; MCLAUGHLIN,
TAMMY, Refund Check, $7.76; MELAND, TIM, Refund Check, $178.85; MENDEL, JOE,
Refund Check, $39.86; MERCHEN, CARLA, Refund Check, $30.34; MERGEN, LORI, Refund
Check, $306.77; MERGEN, RONALD, Refund Check, $22.61; MINOR, DAN & MARY,
Refund Check, $33.38; NEFF, JON & HEATHER, Refund Check, $252.61; NEMITZ, TERRY
& AMY, Refund Check, $63.96; NEUHARTH, KAREN, Refund Check, $4.20; NEYHART,
DONNA, Refund Check, $369.27; OLAUSON, LYLA, Refund Check, $26.47; OLSON, DALE
L & JANICE L, Refund Check, $126.96; PETERSEN, DEANN, Refund Check, $145.83;
PETERSON, MARY ANN, Refund Check, $272.98; RATH, ANNE, Refund Check, $150.18;
RENAAS-BJORDAL, KATHY, Refund Check, $233.10; RICE, JAMES & VICKI S, Refund
Check, $180.73; RITTER, ROBERT, Refund Check, $28.84; SHEARER, SHARON, Refund
Check, $117.40; SMIDT, ORVILLE, Refund Check, $40.59; STEDMAN, DONALD, Refund
Check, $63.71; STOEBNER, RICK, Refund Check, $133.62; STOVER, C SCOTT, Refund
Check, $53.23; STRAND, CHAD & CATHY, Refund Check, $32.19; STRUWE, JEFFREY &
SUSAN, Refund Check, $279.31; SUMNER, TODD, Refund Check, $237.20; SWANSON,
NANCY, Refund Check, $1097.34; SWISHER, DAVE, Refund Check, $190.81; TASSLER,
KATHLEEN, Refund Check, $19.79; TELKAMP, JACKIE, Refund Check, $148.17; VIRNIG,
BILL & MICHELE, Refund Check, $128.74; WAGNER, SCOTT, Refund Check, $9.88;
WANG, ANDY, Refund Check, $33.27; WELLNITZ, WILLIAM, Refund Check, $136.39;
WERNER, MARK, Refund Check, $71.04; WEVERKA, JOHN, Refund Check, $87.33;
WHISPERING PINES ASSOCIATION, Refund Check, $1215.90; WHISPERING PINES
ASSOCIATION, Refund Check, $508.27; WIECZOREK, TERRY, Refund Check, $90.34;
WILEN, RYAN & BENTE, Refund Check, $53.07; ZEGERS, HALEY, Refund Check, $45.63;
Belrose, Jesse, Telephone Refund, $71.10; Belt, Jenna, Telephone Refund, $38.07; Dockendorf,
Lindsey, Telephone Refund, $119.66; Dorn, Violet, Telephone Refund, $22.62; Duchesneau,
Dawson, Telephone Refund, $16.74; Hanson, Jacob, Telephone Refund, $13.94; Heinecke,
Ramsey, Telephone Refund, $20.74; Henne, Bridget, Telephone Refund, $25.11; Jackson, Addy,
Telephone Refund, $101.37; Jolley, Olivia, Telephone Refund, $80.95; Ogle, Tyler, Telephone
Refund, $16.74; Rasmussen, Elise, Telephone Refund, $16.74; Turner, Nathan, Telephone
Refund, $64.13
PERSONNEL INFORMATION
Department Salaries (June): Electric, $251,777.53; Water, $121,541.13; Wastewater,
$124,831.58; Telephone, $333,894.51; Retirement, $46,636.40; Social Security, $59,600.00;
Insurance, $101,952.80; Deferred Comp, $14,242.15.
Salary Changes: D. Weekes, $31.00; L. Sebring, $6,216.45; J. Brown, $22.31; D. Brutty, $27.39.
New Hire: T. Hiltunen, $17.32; L. Keszler, $16.02; J. Flack, $17.32; K.Pumper, $16.52; T.
Coverstone, $20.10;
EXECUTIVE SESSION
Motion was made by Hansen, seconded by Carruthers to adjourn to an executive session
for the purpose of consulting with legal counsel and reviewing communications from legal
counsel about proposed or pending litigation or contractual matters and discuss marketing or
pricing strategies. All members present voted in favor of the motion.
The Board reconvened in open session.
AMENDMENT TO TRANSFER TO CITY GENERAL FUND
Motion was made by Hawley that the following Resolution 16-23 be approved.
RESOLUTION NO. 16 - 23
RESOLUTION AMENDING RESOLUTION NO. 25-22
PROVIDING FOR TRANSFER OF UTILITY SURPLUS FUNDS
TO THE CITY GENERAL FUND
WHEREAS the Brookings Municipal Utilities Board passed Resolution
No. 25-22 providing the transfer of Utility surplus funds to the City General Fund beginning
January 1, 2023; and
WHEREAS it is the intent of the Brookings Municipal Utilities Board to change
the above referenced transfer levels of surplus funds to the General Fund and an additional
transfer to the General Fund for the purpose of funding General Fund initiatives to improve
regional economic development; and
WHEREAS the annexation of Brookings Municipal Utilities property into the
corporate city limits of the City of Brookings created municipal sales tax changes that impacted
the contractual obligations of the Brookings Municipal Utilities Water Fund; and
WHEREAS it is the intent of the Brookings Municipal Utilities Board to change
the Electric Fund Annual Transfer by an amount identified by Water Treatment Plant (WTP)
Change Order #2 – Municipal Sales Tax and Reduction in South Dakota Sales Tax for the WTP
passed by the Brookings Municipal Utilities Board on June 12, 2023.
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that Resolution No. 25-22 be amended to provide that, beginning July 1, 2023, transfers
be made to the City General Fund from the Electric and Telephone Funds in amounts as
established by the following:
Electric Fund
Total Annual Transfer of $2,330,000 to the City General Fund less WTP Change Order #2
and
Additional $25,000 transfer to the Brookings Economic Development Corporation
Te lephone Fund
Total Annual Transfer of $175,000 to the City General Fund
and
Additional $25,000 transfer to the Brookings Economic Development Corporation
Adopted this 10th day of July, 2023.
ATTEST:
________________________________ _________________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Hansen. All members present voted in favor of the motion.
INTERFUND TRANSFER FROM THE ELECTRIC FUND TO THE WATER FUND
Motion was made by Hawley that the following Resolution 17-23 be approved.
RESOLUTION NO. 17 - 23
RESOLUTION AUTHORIZING INTERFUND TRANSFER
BETWEEN UTILITY FUNDS
WHEREAS the annexation of Brookings Municipal Utilities property into the
corporate city limits of the City of Brookings created municipal sales tax changes that impacted
the contractual obligations of the Brookings Municipal Utilities Water Fund; and
WHEREAS the Brookings Municipal Utilities Board approved Water Treatment
Plant (WTP) Change Order #2 - Municipal Sales Tax and Reduction in South Dakota Sales Tax
for the WTP on June 12, 2023, to authorize fulfillment of the BMU Water Fund contractual
obligations; and
WHEREAS the Brookings Municipal Utilities Board approved Resolution 16-23
amending transfers of surplus funds from the BMU Electric Fund to the City General Fund due
to the municipal sales tax and reduction of SD Sales tax impacts of the WTP Change Order #2
effective July 1, 2023; and
WHEREAS it is the intent of the Brookings Municipal Utilities Board to transfer
funds from BMU Electric Fund to the BMU Water Fund.
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that funds in the amounts identified in WTP Change Order #2 be transferred from the
BMU Electric Fund to the BMU Water Fund as they become identified.
Adopted this 10th day of July, 2023
ATTEST:
___________________________ _____________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Bartels. All members present voted in favor of the motion.
WATER IMPROVEMENTS TO THE FACILITIES PLEDGING CERTAIN REVENUE AND
COLLATERAL TO SECURE THE PAYMENT OF THE REVENUE BOND – LEAD WATER
SERVICE REPLACEMENT PROGRAM
Motion was made by Hawley that the following Resolution 18-23 be approved.
RESOLUTION NO. 18 - 23
RESOLUTION RELATING TO CERTAIN DRINKING WATER
FACILITIES IMPROVEMENTS; GIVING APPROVAL TO THE
ISSUANCE AND SALE OF REVENUE BONDS TO FINANCE,
DIRECTLY OR INDIRECTLY, THE IMPROVEMENTS TO
THE FACILITIES; PLEDGING CERTAIN REVENUES AND
COLLATERAL TO SECURE THE PAYMENT OF THE
REVENUE BOND; AUTHORIZING OFFICERS OF THE
UTILITY BOARD TO APPROVE, EXECUTE AND DELIVER
CERTAIN AGREEMENTS AND DOCUMENTS RELATING
TO THE IMPROVEMENTS AND THE REVENUE BOND
BE IT RESOLVED by the Utility Board (the “Board”) of Brookings Municipal Utilities,
Brookings, South Dakota (“BMU”), as follows:
Section 1. Recitals.
1.01. The City of Brookings (the “City”) is authorized by South Dakota Codified Laws,
Chapter 9-40, as amended (the “Act”), to acquire land and acquire and construct improvements
to its drinking water collection, treatment and distribution facilities (collectively, the “System”).
Pursuant to the Act and the city charter, the City has established BMU to manage and control
such services.
1.02. The City has determined that it is necessary and desirable to construct certain
improvements to the System, which will consist of removing and replacing the system’s
remaining lead service lines (the “Improvements”). The City is authorized to issue its revenue
obligations under SDCL, Chapters 9-40 and 6-8B, in order to finance a portion of the cost of the
Improvements, and to make all pledges, covenants and agreements authorized by law for the
protection of the holders of the obligations, including, without limitation, those covenants set
forth in SDCL, Sections 9-40-16 and 9-40-17. The obligations are to be payable from revenues
of the System.
1.03. The City has applied for one or more loans from the South Dakota State
Revolving Fund, to be evidenced by the execution and delivery of one or more Revenue
Obligation Loan Agreements (whether one or more, the “Loan Agreement”) between the South
Dakota Conservancy District (the “District”) and the City, and the City will pledge the loan
payments thereunder for the security of a State Revolving Fund Revenue Bond of the City
(whether one or more, the “SRF Bonds”) and the interest thereon. The General Manager of
BMU is hereby authorized and directed to execute and deliver the Loan Agreement for and on
behalf of BMU in the form and content submitted to this Board, with such changes that are not
substantive as the Attorney for the City deems appropriate and approves. The General Manager
is hereby further authorized and directed, in cooperation with the City staff, to implement and
perform the covenants and obligations of the City as set forth in or required by the Loan
Agreement and is authorized and directed to execute and deliver such other agreements,
certificates or documents as may be required by the City’s bond counsel or the District in
connection with the issuance of the SRF Bonds.
Section 2. Security Provisions.
2.01. Rates and Charges. The Board will maintain, revise, charge and collect rates and
other charges for all service furnished and made available by the System, according to schedules
such that, in each fiscal year, the Net Revenues Available for Debt Service (as defined in the
Loan Agreement) equal at least 110% of System Debt Service (as defined in the Loan
Agreement) for such fiscal year.
2.02. Pledged Revenues. 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,
are irrevocably pledged to the District, on a parity of lien with the pledge of such revenues
securing other obligations permitted to be payable therefrom.
Section 3. Additional System Obligations. The Board acknowledges that the Loan
Agreement may contain provisions limiting the City’s ability to issue or incur additional System
Revenue Debt (as defined in the Loan Agreement) while the SRF Bond is outstanding. The
Board will not approve or participate in the issuance of any additional System Revenue Debt
unless the conditions set forth in the Loan Agreement for issuance of such additional obligations
have been satisfied.
Adopted this 10th day of July, 2023.
ATTEST:
___________________________ _____________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Hansen. All members present voted in favor of the motion.
CHANGE ORDER NO. 3 TO WATER TREATMENT PLANT PROJECT
Motion was made by Hansen, seconded by Hawley that Change Order No. 3 to the Water
Treatment Plant Project be approved. All members present voted in favor of the motion.
BULK WATER SUPPLY AGREEMENT WITH UNIVERSITY ESTATES
Motion was made by Carruthers that the following Resolution 19-23 be approved.
RESOLUTION NO. 19 - 23
RESOLUTION APPROVING BULK WATER SUPPLY
AGREEMENT WITH UNIVERSITY ESTATES
BE IT RESOLVED by the Brookings Municipal Utilities Board (the Board) that:
1. The Agreement entitled "Bulk Water Purchase Agreement” with
University Estates be hereby approved.
2. The President of the Board and/or Executive Vice President/General
Manager be hereby authorized to execute the approved contract
documents.
Adopted this 10th day of July, 2023.
ATTEST:
_________________________________ _________________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Hansen. All members present voted in favor of the motion.
DISCUSSION OF ELECTRIC STRATEGIC PRIORITIES
The Electric Strategic Priorities were reviewed with the Utility Board. No action was
taken.
EXECUTIVE SESSION
Motion was made by Bartels seconded by Carruthers to adjourn to an executive session
for the purpose of discussing personnel. All members present voted in favor of the motion.
The Board reconvened in open session.
ADJOURNMENT
The meeting adjourned.
ATTEST:
________________________________ ______________________________
Seth Hansen, Secretary Tim Harvey, President