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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: 44 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. 45 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. 46 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. �. �.. Sha`�� City Clerk CITY OF BROOKINGS Tim Reed, Mayor