HomeMy WebLinkAboutCCMinutes_2013_02_2643
Brookings City Council
February 26, 2013
The Brookings City Council held a meeting on Tuesday, February 26, 2013 at 6:00 p.m., at City
Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike
McClemans, Ope Niemeyer, Keith Corbett, Jael Thorpe and Tom Bezdichek. City Attorney Steve
Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present.
Consent Agenda. A motion was made by Corbett, seconded by Kubal, to approve the consent
agenda.
A. Action to approve the agenda.
B. Action to approve the February 12th and February 19th Council meeting minutes.
C. Action on the following volunteer appointments: Board of Adiustment: appoint Shawn
Storhaug as second alternate (term expiring 1/1/2015); Board of Appeals: appoint George
Houtman (term expiring 1/1/2018); and Human Rights Committee: appoint Sam Jennings II
(term expiring 1/1/2016).
D. Action on Resolution No. 17 -13, a Resolution designating the official newspaper.
Resolution No. 17 -13 - Resolution Designating Official Newspaper
Pursuant to SDCL 9 -12 -6, the City Council of the City of Brookings, South Dakota, hereby
designates the Brookings Register as the official newspaper for the City of Brookings for the
ensuing year.
E. Action to cancel the March 12, 2013 City Council Meeting.
On the motion, all present voted yes; motion carried.
Resolution No. 18 -13. A motion was made by Thorpe, seconded by Corbett, to approve
Resolution No. 18 -13, a Resolution authorizing Change Order No. 3 for Dakota Nature Park
Nature Center; Clark Drew Construction, Inc. All present voted yes; motion carried.
Resolution No. 18 -13 - A Resolution Authorizing Change Order No. 3 for Dakota Nature Park -
Nature Center; Clark Drew Construction, Inc.
Be It Resolved by the City Council that the following change order be allowed for the Dakota
Nature Park Nature Center: Construction Change Order Number 3.
TE Underground: Materials - Pipe, fittings, etc. = $1,225.00; Labor - Boring 1" poly: 11.00/ft. @
830' = $9,130.00; Subtotal: $10,355.00. Prairie Sons: Materials - BFP, Meter, etc. = $476.00,
Tax @ 6% = $29.00; Labor -16 hrs. @ 47.00 /h.r = $729.00; Travel: 4hrs. @ $47.00 /hr. =
$182.00; O/P - Truck exp. @ 7.5% = $68.00; Tools @ 3% = $27.00; Fuel Surcharge /mile @ $.10 =
$12.00 @ 8% = $124.00; Bonding @ 1.44% = $24.00; Subtotal: $1,670.00. Clark Drew
Construction, Inc.: Subtotal = $12,025.00; O/P @ 6% = $721.50; SD Excise Tax @ 2% = $254.93;
Bonding 1.2% = $156.02; Lump Sum Total = $13,157.45. There will be a total addition of
$13,157.45. Contract history: $1,198,700.00 original contract sum; $1,191,990.00 after change
order No. 1; $1,191,478.31 after change order No. 2; $1,204,635.76 new contract amount after
Change Order No. 3.
Resolution No. 19 -13. A public hearing was held on Resolution No. 19 -13, a Resolution Levying
Assessment for Street Assessment Project No. 2012- 09STA, 25th Avenue and 10th Street Project.
A motion was made by McClemans, seconded by Niemeyer, to approve Resolution No. 19 -13.
All present voted yes; motion carried.
Resolution No. 19 -13 - Levying Assessment for Street Assessment Project No. 2012- 09STA;
25th Avenue and 10th Street Project
Whereas, the City Council has provided for the following work to be completed under Project
No. 2012- 09STA, 25th Avenue and 10th Street Project
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
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1. The City Council has made all investigation which it deems necessary and has found and
determined that the amount which each lot or tract will be benefited by the construction of
the street improvement heretofore designated as Street Assessment Project No. 2012 -
09STA is the amount stated in the proposed assessment roll.
2. The assessment for Street Assessment Project No. 2012 -09STA is hereby approved and the
assessment thereby specified are levied against each and every lot, piece or parcel of land
thereby described.
3. The assessment shall be divided into ten (10) equal annual installments.
4. Such assessments, unless paid within thirty (30) days after the date of mailing of a
statement of account by the City, shall be collected by the City in accordance with the
procedure for Plan One in Sections to SDCL 9 -43 -102. Interest of ten (10) percent per
annum shall accrue on the unpaid balance of the assessment for a maximum of ten (10)
years. No interest shall be due during the five year deferral period.
5. Collection of the assessment shall be as stated in the "Memorandum of Understanding by
and between the City of Brookings and Den -wil Development and Lloyd Companies for the
Development of 25th Avenue and 10th Street Extension Project ". The first assessment
installment shall be due on January 1, 2017. If at any time during the initial five -year
deferral period, development were to occur on parcels 1, 2 or 3 as identified on Exhibit A,
the assessment shall be activated for that respective parcel. Development is defined as any
building permit or approved plat of said parcel. Any plat that seeks to further subdivide
parcels 1, 2 or 3 shall trigger that assessment for the entire parcel that is being subdivided.
Ordinance No. 32 -12. A motion was made by McClemans, seconded by Thorpe, to remove
from the table Ordinance No. 32 -12, 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 Brookings, SD, for the purpose of transmitting or distributing natural gas. All present voted
yes; motion carried.
A public hearing was held on Ordinance No. 32 -12, 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 Brookings, SD, for the purpose of transmitting or distributing natural gas. A
motion was made by Bezdichek, seconded by Corbett, to approve Ordinance No. 32 -12. All
present voted yes; motion carried.
Resolution No. 20 -13. A motion was made by Kubal, seconded by Corbett, to approve
Resolution No. 20 -13, a Resolution to extend NorthWestern Public Service Company
Agreement. All present voted yes; motion carried.
Resolution No. 20 -13 - Resolution to Extend Northwestern Public Service Company Agreement
Whereas, The City of Brookings adopted Ordinance No. 29 -92 on December 15, 1992, granting
to Northwestern Public Service Company, its successors and assigns, the right to occupy any of
the streets, alleys, or public places of the City of Brookings, South Dakota, for the purpose of
transmitting or distributing natural gas; and
Whereas, the term of Ordinance No. 29 -92 was granted for a period of twenty years from the
31st day of December, 1992; and
Whereas, on December 4, 2012, the agreement was extended 60 days; and
Whereas, the terms of the renewal ordinance will not be finalized before the expiration date of
Ordinance No. 29 -92; and
Therefore Be It Resolved, that the expiration date of Ordinance No. 29 -92 be extended until
March 20, 2013.
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Downtown Brookings, Inc. 2013 Work Plan. A motion was made by Corbett, seconded by
Bezdichek, to approve Downtown Brookings, Inc. 2013 Work Plan. All present voted yes;
motion carried.
Brookings Health Systems Quarterly Financial Report. Representatives from Brookings Health
Systems provided the City Council with a financial report and update on current and pending
issues.
Resolution No. 21 -13. A motion was made by Bezdichek, seconded by Kubal, to approve
Resolution No. 21 -13, a Resolution Authorizing Prepayment and Refunding of a Portion of a
Lease Agreement; Approving the Execution of a Second Lease Agreement 2013A and an
Amended and Restated Irrevocable Declaration of Trust by First Bank and Trust, as Trustee;
Providing for the Execution, Sale and Delivery of not to exceed $5,000,000 Aggregate Original
Amount of Refunding Certificates of Participation Series 2013A in the Lease - Purchase
Agreement 2013A Pursuant to a Certificate Purchase Agreement and the Application of the
Proceeds Thereof to prepay a Portion of the Lease Agreement and Authorizing and Approving
other Actions and Agreements necessary to Consummate the Contemplated Improvement and
Financing. All present voted yes; motion carried.
Resolution No. 21 -13 - Authorizing prepayment and refunding of a portion of a Lease
Agreement; Approving the execution of a second Lease Agreement 2013A and an amended and
restated Irrevocable Declaration of Trust by First Bank and Trust, as Trustee; Providing for the
execution, sale and delivery of not to exceed $5,000,000 aggregate original amount of
refunding Certificates of Participation Series 2013A in the Lease - Purchase Agreement 2013A
pursuant to a Certificate Purchase Agreement and the application of the proceeds thereof to
prepay a portion of the Lease Agreement and authorizing and approving other actions and
agreements necessary to consummate the contemplated improvement and financing
Whereas, the City of Brookings (the "City ") pursuant to Resolution No. 112 -12 into a Ground
Lease, Lease Agreement and Declaration of Trust, as the terms are defined therein, all dated
October 1, 2012; and
Whereas, it is declared necessary pursuant to and in accordance with SDCL §§ 6 -8B -30 through
6 -8B -52 that the City refund and prepay a portion of the Lease Agreement and enter into an
Second Lease Agreement 2013A (the "Second Lease Agreement ") and Amended and Restated
Declaration of Trust ( "Amended Declaration of Trust ") in order to save the City debt service on
the Lease Agreement.
Now, Therefore, Be It Resolved by the City Council of the City of Brookings as follows:
Section 1. Authorization and Approval of Transactions. Subject to the terms and conditions set
forth herein, the City hereby (i) authorizes the prepayment and refunding of $5,000,000 of the
Lease Agreement, (ii) authorizes the Second Lease Agreement 2013A on an annual
appropriation basis for an initial lease term and renewal terms not to exceed in the aggregate
30 years, and (iii) approves the Trustee's execution of the Amended and Restated Declaration
of Trust, (iv) approves the Trustee's execution and delivery of Certificates of Participation in the
Second Lease Agreement 2013A (the 2013A Certificates) payable as to principal in an aggregate
original amount not exceeding $5,000,000, to the First Bank and Trust ( the "Purchaser ")
pursuant to the Amended and Restated Declaration of Trust and a Certificate Purchase
Agreement between the City and the Purchaser (the "Certificate Purchase Agreement ") and the
use of the proceeds thereof to partially prepay and refund the Lease Agreement, and to pay the
expenses incurred in connection with the execution and delivery of the Certificates. The
Second Lease Agreement 2013A and the Certificates of Participation, Series 2013A are
designated as qualified tax - exempt obligations under the Internal Revenue Code and
regulations.
Section 2. Approval of Documents. The City hereby approves (i) the Amended and Restated
Declaration of Trust, (ii) the Second Lease Agreement 2013A, and (iii) the Certificate Purchase
Agreement, in substantially the respective forms thereof presented at this meeting.
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Section 3. Certificates of Participation. The 2013A Certificates shall be executed and delivered
in fully- registered form, shall be dated and numbered, shall be payable as to principal in the
denominations of $5,000 and integral multiples thereof and in such amounts (not exceeding in
the aggregate $10,000,000) and on such dates (not later than thirty years), shall be payable as
to interest at such rate or rates to be negotiated by the Authorized Officer and shall be subject
to prepayment upon such terms and conditions, in such amounts and on such dates as may be
specified in the Declaration of Trust and in the executed Certificate Purchase Agreement. The
Mayor, the Clerk and the Finance Manager (each an "Authorized Officer ") of the City are hereby
authorized and empowered for and on behalf of the City to approve the Certificate Purchase
Agreement, his or her execution and delivery thereof to evidence conclusively the City's
approval thereof.
Section 4. Execution and Delivery of Documents. Each Authorized Officer of the City is
authorized and empowered for and on behalf of the City to execute and deliver (i) Second Lease
Agreement 2013A, in substantially the respective forms thereof presented at this meeting or
with such changes therein and modifications thereto as may be approved by the Authorized
Officer executing and delivering the same on behalf of the City, such execution and delivery to
evidence conclusively such approval.
Section 5. Bond Counsel. The City hereby selects Meierhenry Sargent LLP to provide bond
counsel services with respect to the execution and delivery of the Certificates as is necessary in
order to accomplish the purposes of this Resolution. Any contracts for the provision of such
services shall be executed by an Authorized Officer, and the execution of such contracts shall
represent approval by the City of the terms of such contracts. The fees, costs and expenses
with respect to the foregoing shall be paid from the proceeds of the sale of the Certificates or
any other legally available moneys.
Section 6. Miscellaneous. Each Authorized Officer and any other agent or employee of the City
is hereby authorized and empowered to take such other actions and execute and deliver such
other instruments and agreements, including appropriate tax certifications and other closing
certificates, as may be necessary or appropriate for the purposes of consummating the
transactions contemplated herein, the necessity therefore and the appropriateness thereof to
be evidenced conclusively by any such Authorized Officer's taking any such action or executing
and delivering any such instrument, agreement or certificate and all actions taken heretofore
and hereafter pursuant to the authority hereof are hereby authorized, ratified and approved for
and as the actions of the City.
District Transportation /Utility Development Plan for South Main Avenue. A motion was
made by McClemans, seconded by Kubal, adopt the District Transportation /Utility
Development Plan for the South Main Avenue and issue RFP for engineering services. All
present voted yes; motion carried.
Adjourn. A motion was made by Corbett, seconded by Kubal, to adjourn. All present voted
yes; motion carried. Meeting adjourned at 6:53 p.m.
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Sha`�� City Clerk
CITY OF BROOKINGS
Tim Reed, Mayor