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HomeMy WebLinkAboutCCMinutes_2003_08_26 111 Brookings City Council Tuesday,August 26, 2003 The Brookings City Council convened in a budget work session on Tuesday, August 26, 2003 at 3:10 p.m. in the City Council Chambers at City Hall with the following members present: Mayor Scott Munsterman, Council Members Tim Reed, Tom Bezdichek (arrived at 3:22 p.m.), Julie Whaley, Tom Bozied and Mike McClemans. Council Member poris Roden was absent. City Manager Mike Williams and City Clerk Shari Thornes were also present. No action was taken. Meeting adjourned at 5:10 p.m. The Brookings City Councii held an action meeting on Tuesday, August 26, 2003 at 5:30 p.m. at City Hall with the following members present: Mayor Scott Munsterman, Council Members Tom Bezdichek, Tim Reed, Julie Whaley, Tom Bozied and Mike McClemans. Council Member poris Roden was absent. City Manager Mike Williams, City Attorney Steve Britzman, and Shari Thornes, City Clerk, were also present. Consent Agenda. Action on Resolution No: 42-03 pertaining to the sale of bonds was moved from item 20 to item 9A on the agenda. Action on bids for the 2003-04(STI) Capital Street Construction project was removed from the consent agenda. A motion was made by Reed, seconded by Whaley, to approve the consent agenda which includes adoption of the agenda as amended; approval of the August 5, 2003 and the amended August 12, 2003 minutes; and action to award the bid for a Self-Propelled Runway Broom to J.D. Evans of Sioux Falls in the amount of$35,270 (no other bids were received). All members voted yes to approve; motion carried. Action on Bids — 2003-04 STI Capital Street Construction. A motion was made by Bozied, seconded by McClemans, to award the bid on the 2003-04STI Capital Street Construction to Bowes Construction for $100,640.07. A bid was also received from Winter Brothers Underground for $103,839.00. All present voted yes; motion camed. Mavoral Proclamation — Bryan Gums Dav. Mayor Munsterman proclaimed August 26�' as "Bryan Gums Day" in reco�nition for his work in the D.A.R.E. program in the city and in the state. �1 Chamber of Commerce Reaort. Jay Bender, Chamber Board President, expressed concern regarding the City's proposed termination of fi�nding to the Chamber and requested partial funding in 2004 with the intent to return to prior funding levels in the near future. He highlighted the Chamber's 2004 objectives. No action was taken. 2002 Audit Reoort bv Dick Ellis. Dick Ellis, Wohlenberg, Ritzman and Company, presented an official audit statement on the 2002 City General financial records. He noted that the approval of the final audit is pending in the State Office of Legislative Audit and is not yet available. No action was taken. House Moving Request— Randv Telkama. A public hearing was held on a house moving request from Randy Telkamp for a one and one-half story house from Turner County, South Dakota to the property described as Lot 6, Meyer's Second Addition in the NW '/4 of Section 11, T109N-RSOW, also known as 3610 Pleasant Drive. All present had an opportunity to be heard. Motion was made by McClemans, seconded by Whaley, to approve the request. All members voted yes; motion carried. Resolution No. 42-03—Refund Bonds. A motion was made by McClemans, seconded by Reed, to approve Resolution No. 42-03, a resolution refunding the 1998 Series A and Series B Bonds and awarding the bid to Harris Trust and Savings Ba.nk, Wells Fargo Brokera�e Services, LLC of Chicago, IL and Minneapolis, MN for $7,657,962.00. Bids were received from Harris Trust and Savings Bank, Wells Fargo Brokerage Services, LLC of Chicago, IL and Minneapolis, MN for $7,657,962.00; from Griffin, Kubik, Stephens & Thompson of Chicago, IL for $7,657,650.00; from U.S. Ba.ncorp Piper Jaffray from Minneapolis, MN for $7,658,109.00; and from UBS Financial Services Inc. from Chicago, IL for$7,663,277.00. All members voted yes; motion carried. Resolution No. 42-03 112 Resolution Relating To Sales Tax Revenue Refunding Bonds; Authorizing The Issuance And Awarding The Sale Thereof And Authorizing The Eaecution And Delivery Of Certain Documents Relating Thereto BE IT RESOLVED by the City Council (the "Council") of the City of Brookings, South Dakota (the"City"), as follows: SECTION 1. RECITALS, FINDINGS AND DETERMINATION. 1.01. The City is a political suhdivision of the State of South Dakota and a body corporate and politic and under the laws of the State of South Dakota, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal matters, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State of South Dakota. 1.02. The City is authorized by Chapter 10-52, South Dakota Codified Laws (the Act) to levy a "non-ad valorem tax" (as defined by the Act) on the sa1e, use, storage and consumption of items taxed under Sections 10-45 and 10-46, South Dakota Codified Laws, subject to certain exceptions; and the City has adopted and enacted Ordinances Nos. 21-81, 25-96 and 20-98, now codified as Sections 78-31 through 78-38, Brookings Code of Ordinances (the Ordinance) pursuant to the Act imposing the sales taxes authorized by the Act within the City (the Sales Tax). 1.03. The Act provides that cities levying a Sa1es Tax may issue non-ad valorem sales tax revenue bonds pursuant to Section 10-52-2.10 of the Act and Chapter 6-8B, South Dakota Codified Laws in anticipation of the collection of the Sales T�. Such bonds are required to be payable solely from collections of the Sales Tax and the City is required to covenant that it will continue to impose and collect the Sales Tax so long as such bonds are outstanding. 1.04. Pursuant to resolutions adopted by the City Council on November 17, 1998 and December 8, 1998, the City has heretofore issued its Sales Tax Revenue Bonds, Series 1998, dated December 1, 1998, and its Sa1es Tax Revenue Bonds, Series 1998B, dated December 30, 1998, respectively (collectively, the Series 1998 Bonds). Pursuant to R�solution 09-01, adopted by the City on February 12, 2001 (the Original Resolution), the City has heretofore issued its Sales Tax Revenue Bonds, Series 2001, dated as of March 1, 2001 (the Series 2001 Bonds). Apart from the Series 1998 Bonds and the Series 2001 Bonds (collectively, the Outstanding Bonds), there are no other bonds or indebtedness of the City outstanding that are payable in whole or in part from or secured by the Pledged Revenues (as defined in the Original Resolution}. 1.05. As used in this resolution, "Resolution" shall mean the Original Resolution as amended and supplemented by this resolution and as such resolution may from time to time be further amended or supplemented in accordance with its terms. Capitalized terms, used but not defined herein, shall have the meanings ascribed to them in the Original Resolution, as amended and supplemented. 1.06. The City has determined that it is necessary and desirable to refund the Series 1998 Bonds from the proceeds of the Series 2003 Bonds hereinafter authorized. The City reasonably anticipates debt service savings to result from the refunding of the Series 1998 Bonds. 1.07. In Section 4 of the Original Resolution, the City reserved the right to issue additional sales t� revenue bonds payable from and secured by the Pled�ed Revenues on a parity with the Outstanding Bonds on certain terms and conditions, provided (i) the City is current in the payment of principal and interest on the Outstanding Bonds and is current in the accumulations required for the Principal and Interest Account and the Reserve Account, (ii) the City is in compliance with the covenants herein contained, and either (iii) the Pledged Revenues collected by the City in the last preceding fiscal year (as determined by the City) is sufficient to cover 1.25 times the combined average annual principal and interest requirements on the Outstanding Bonds, and the proposed parity lien bonds, or (iv) the estimated Pledged Revenues to be collected in the fiscal year in which the proposed parity lien bonds will be issued sha11 be at least equal to 1.25 times the combined average annual l � 3 principal and interest requirements of the Outstanding Bonds and the proposed parity lien bonds 1.08. It is hereby determined that the City is authorized to issue its additional non-ad valorem sales tax revenue refunding bonds (the Series 2003 Bonds) in a principal amount not to exceed the sum of (i} the amount necessary to refund the outstanding Series 1998 Bonds (the Refunded Bonds) in a current refunding on December l, 2003, (ii) fund a deposit to the Reserve Account, (iii) pay the costs of issua�tce of the Series ZQQ3 Bonds, including the premium for bond insurance, if any, and (iv) provide an allowance (not exceedin� 2% of the principal amount of the Bonds)for original issue discount. SECTION 2. SECTION 2. SALE, BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT 2.01. Apnointment of Financial Consultant and Bond Counsel. For purposes of the issuance of the Series 2003 Bonds, the appointment of Public Financial Management, of Minneapolis, Minnesota as flnancial consultant to the City �the Financial Consultant) is hereby ratified and the law firm of Dorsey & Whitney LLP, of Minneapolis, Minnesota (Bond Counsel), is hereby appointed as Bond Counsel. 2.02. Official Statement. The actions of the City Manager and other oi�icers of the City, in cooperation with the Financial Consultant, in preparing an Official Statement to be distributed by the Financial Consultant to potential purchasers of the Series 2003 Bonds (the Of�'icial Statement) is hereby ratified. 2.03. Sale. Pursuant to the Terms of Sale and the Official Statement, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of Harris Trust and Savings Bank, Wells Fargo Brokerage Services LLC in Chicago, IL and Minneapolis, MN, to purchase the Bonds at a price of$7,657,962.00 plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 2.04. Bond Purchase Agreement. The sale of the Bonds is hereby awarded to the Purchaser and the Mayor is hereby authorized and directed to execute, and the City Clerk to attest and deliver a contract for the sale of the Bonds in accordance with the terms of the proposal (the Bond Purchase Agreement). The execution of a Bond Purchase Agreement between the City and the Purchaser by the Mayor and the City Clerk setting forth final terms of the Series 2003 Bonds is hereby approved and authorized and such execution shall be conclusive evidence of such agreement and sha11 be binding upon the City. The provisions of the Bond Purchase Agreement as so executed, including a11 Exhibits and Appendices thereto, are incorporated herein by reference. SECTION 3. SERIES 2003 BOND TERMS EXECUTION AND DELIVERY. 3.01. Date, Maturities and Interest Rates. The Series 2003 Bonds shall be issued in the denomination of$5,000 each, or any integral multiple thereof, sha11 mature on the dates and in the respective years and amounts, and sha11 bear interest from date of original issue until paid or duly called for redemption at the respective annual rates stated opposite such maturity years as shown on Exhibit A to the Bond Purchase Agreement. The interest thereon and, upon surrender of each Series 2003 Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein; provided if the Series 2003 Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 3.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 3.02. Dates and Interest Pavment Dates. Each Series 2003 Bond shall bear a date of original issue as of the date of delivery to the Purchaser. Upon the initial delivery of the Series 2003 Bonds pursuant to Section 3.06 and upon any subsequent transfer or exchange pursuant to Section 3.05, the date of authentication shall be noted on each Series 2003 Bond so delivered, exchanged or transferred. The interest on the Series 2003 Bonds shall be payable on the dates shown on E�ibit A to the Bond Purchase Agreement, to the owner of ll4 record thereof as the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. Interest shall be computed on the basis of a 360 day year composed of twelve 30 day months. 3.03. Redemption. The Series 2003 Bonds shall be subject to redemption prior to maturity, at the option of the City, in the years and at the redemption prices set forth in Exhibit A to the Bond Purchase Agreement in such order of maturities as may be designated by the City and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, assigned in proportion to their principal amounts. The City Manager shall cause notice of the call for redemption thereof to be published as and if required by law, and, at least thirry days prior to the designated redemption date, shall cause notice of the ca11 thereof for redemption to be mailed, by first class mail (or, if applicable, by the bond depository in accordance with its customary procedures), to the registered owners of any Series 2003 Bonds to be redeemed at their addresses as they appear on the bond register described in Section 3.05 hereof, but no defect in or failure to give such mailed notice sha11 affect the validity of proceedings for the redemption of any Series 2003 Bond not affected by such defect or failure. The notice of redemption shall specify the redemption date, redemption price, the numbers, interest rates and CUSIl' numbers of the Series 2003 Bonds to be redeemed and the place at which the Series 2003 Bonds are to be surrendered for payment, which is the principal of�ice of the Registrar. Official notice of redemption having been given as aforesaid, the Series 2003 Bonds or portions of Series 2003 Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Series 2003 Bonds or portions of Series 2003 Bonds sha11 cease to bear interest. Upon partial redemption of any Series 2003 Bond, a new Series 2003 Bond or Series 2003 Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. 3.04. Apnointment of Initial Registrar. The City hereby appoints the First National Bank in Brookings, Brookings, South Dakota, as bond registrar, transfer agent and paying agent (the Registrar). The Mayor is authorized to execute and deliver, and the City Ck�erk to attest, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation sha11 be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Series 2003 Bonds in its possession to the successor Registrar and sha11 deliver the bond register to the successor Registrar. No resignation or removal of the Registrar shall become effective until a successor Registrar has been appointed and has accepted such appointment. On or before each principal or interest due date, without further order of the Council, the City Manager shall transmit to the Registrar, from the accounts described in Section 4, moneys sufficient for the payment of all principal and interest then due. 3.05. Reg��stration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re�ister. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Series 2003 Bonds and the registration of transfers and exchanges of Series 2003 Bonds entitled to be registered, transferred or exchanged. {b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Series 2003 Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for ll5 registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchan�e of Bonds. Whenever any Series 2003 Bonds aze surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Series 2003 Bonds surrendered upon any transfer or exchange sha11 be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Series 2003 Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Series 2003 Bond or sepazate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (fl Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Series 2003 Bond is at any time registered in the bond register as the absolute awner of such Series 2003 Bond, whether such Series 2003 Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Series 2003 Bond and for all other purposes, and a11 such payments so made to any such re�istered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Series 2003 Bond to the extent of the sum or sums so paid. (g) Ta�ces. Fees and Chazges. For every transfer or exchange of Series 2003 Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other �overnmental charge required to be paid with respect to such transfer or exchange. , (h) Mutilated, Lost, Stolen or Destroyea Bonds. In case any Series 2003 Bond shall become mutilated or be destroyed, stolen or lost, the Registrar sha11 deliver a new Series 2003 Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Series 2003 Bond or in lieu of and in substitution for any such Series 2003 Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in cannection therewith; and, in the case of a Series 2003 Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Series 2003 Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar sha11 be named as obligees. All Series 2003 Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Series 2003 Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Series 2003 Bond prior to payment. 3.06. Execution. Authentication and DeliverX. The Series 2003 Bonds sha11 be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Clerk, and countersigned by an attorney actually residing in the State of South Dakota and duly licensed to practice therein, and shall be sealed with the official corporate seal of the City; provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Series 2003 Bonds shall cease to be such officer before the delivety of any Series 2003 Bond, such signature or facsimile sha11 nevertheless be valid and sufficient for a11 purposes, the same as if he had remained in office until delivery. Notwithstanding such execution, no Series 2003 Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Series 2003 Bond has 11fi been duly executed by the Registrar by the rnanual signature of its authorized representative. Series 2003 Bands of authentication on different Series 2003 Bonds need not be signed by the same representative. The executed certificate of authentication on each Series 2003 Bond shall be conclusive evidence that it has heen authenticated and delivered under this Resolution. When the Series 2003 Bonds have been so prepared, executed and authenticated, the City Manager shall deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the provisions of the Bond Purchase Agreement and the Purchaser shall not be obligated to see to the application of the purchase price. Upon delivery of the Series 2003 Bonds to the Purchaser, the City Manager shall file with the Secretary of State, on the form provided by the Secretary of State, the information required by SDCL, Section 6-8B-19. 3.07. Series 2003 Bond Form. The Series 2003 Bonds sha11 be prepazed in substantially the form presented to and approved by this Council and on file in the office of the City Clerk. 3.08. Securities De�ositorv. The Series 2003 Bonds shall be initially issued in book-entry only form and the following provisions sha11 apply: (a) For purposes of this section the following terms sha11 have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Series 2003 Bond, the person in whose name such Series 2003 Bond is recorded as the beneficial owner of such Series 2003 Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." sha11 mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Series 2003 Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Series 2003 Bonds as securities depository. % "Representation Letter" sha11 mean the Blanket Issuer Letter of Representation pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (b) The Series 2003 Bonds sha11 be initially issued as separately authenticated fully registered bonds, and one Series 2003 Bond shall be issued in the principal amount of each stated maturity of the Series 2003 Bonds. Upon initial issuance, the ownership of such Series 2003 Bonds shall be registered in the bond re�ister in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Series 2003 Bonds registered in its name for the purposes of payment of the principal of or interest on the Series 2003 Bonds, selecting the Series 2003 Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Series 2003 Bonds under this resolution, registering the transfer of Series 2003 Bonds, and for a11 other purposes whatsoever; and neither the Registrar nor the City sha11 be affected by any notice to the contrary. Neither the Registrar nor the City sha11 have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Series 2003 Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Series 2003 Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Series 2003 Bonds, with respect to any notice which is permitted or required to be given to owners of Series 2003 Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Series 2003 Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar sha11 pay 117 SECTION 6. 1NVESTMENTS: ARBITRAGE; QUALIFIED TAX-EXEMPT OBLIGATIONS. 6.01. Covenant. The City covenants and agrees with the registered owners from time to time of the Series 2003 Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Series 2003 Bonds to become includible in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code), and applicable Treasury Regulations (the Regulations) and covenants to take any and a11 actions within its powers to ensure that the interest on the Series 2003 Bonds wi11 not become includible in gross income of the recipient under the Code and the Regulations. The City Manager shall ascertain monthly the amount on deposit in the Principal and Interest Account. If the amount on deposit therein, ever exceeds the aggregate amount of principal and interest due and payable from the Principal and Interest Account within 13 months thereafter by an amount exceeding $100,000, such excess sha11 either (1) not be invested except at a yield equal to or less than the yield borne by the Series 2003 Bonds, or (2) be used to prepay and redeem principal of the Series 2003 Bonds. 6.02. Certification. The Mayor or City Manager, being the officers of the City charged with the responsibility for issuing the Series 2003 Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable Re�ulations, stating the facts, estimates and circumstances in e�stence on the date of issue and delivery of the Series 2003 Bonds which make it reasonable to expect that the proceeds of the Series 2003 Bonds will not be used in a manner that would cause the Series 2003 Bonds to be arbitrage bonds within the meaning of the Code and Regulations. 6.03. Qualified Tax-Exem�t Obli ations. This Council hereby designates the Series 2003 Bonds as "qualified ta�c-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code} which will be issued by the City and all subordinate entities thereof during calendar year 2003 does not exceed $10,000,000. 6.04. Arbitrage Rebate. The City acknowledges that the Series 2003 Bonds are subject to the rebate requirements of Section 148(fl of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(� and applicable Regulations to preserve the exclusion of interest on the Series 2003 Bonds from gross income for federal income t� purpose, unless the Bonds qualify for one of the exceptions from the rebate requirement under Section 148(� of the Code and Sections 1.148-7 of the Regulations. In furtherance of the foregoing, the Mayor or City Manager are hereby authorized and directed to execute a t� or rebate certificate, in the form prescribed by Bond Counsel, and the City hereby covenants and agrees to observe and perform the covenants and agreements contained therein, unless amended or terminated in accordance with the provisions thereof. SECTION 7. CONTINUING DISCLOSURE. The City acknowledges that the Series 2003 Bonds are subject to the continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchan�e Act of 1934 (17 C.F.R. § 240.15c2-12) (as in effect and interpreted from time to time, the Rule). The Rule governs the obligations of certain underwriters to require that issuers of municipal obligations enter into agreements for the benefit of the holders of the obligations to provide continuing disclosure with respect to the obligations. To provide for the public availability of certain information relating to the Series 2003 Bonds and the security therefor and to pernut participating underwriters in the primary offering of the Series 2003 Bonds to comply with the Rule, which will enhance the marketability of the Bonds, the Mayor or City Manager are hereby authorized and directed to execute an Undertaking of Continuing Disclosure (the Undertaking), by which the City agrees to provide such information, either directly or through a disclosure agent. The City hereby covenants and agrees to observe and perform the covenants and agreements contained in the Undertaking, unless amended or terminated in accordance with the provisions thereof, for the benefit of the registered owners 118 or beneficial owners from time to time of the Outstanding Bonds as provided in the Undertaking. SECTION 8. MISCELLANEOUS. 8.01. The terms defined in the Original Resolution shall have the same meaning when used herein, unless the context or use thereof indicates another or different meaning or intent. 8.02. Effective upon the issuance of the Series 2003 Bonds, Section 4 of the Original Resolution is amended to read as follows: "SECTION 4. ADDITIONAL BONDS. No additional Bonds sha11 be issued and made payable from the Pledged Revenues and having a lien upon such revenues and the Special Tax Fund which is prior to or superior to the lien of the Bonds authorized herein. Nothing in this Resolution sha11 be construed in such manner as to prevent the issuance by the City of additional bonds payable from the Pledged Revenues and constituting a lien upon the Pledged Revenues and the Special Tax Fund equal to or on a parity with the lien of the Bonds authorized herein, provided (i) the City is current in the payment of principal and interest on the Outstanding Bonds and is current in the accumulations required for the Principal and Interest Account and the Reserve Account, (ii) the City is in compliance with the covenants herein contained, and either (iii) the Pledged Revenues collected by the City in the last preceding fiscal year (as determined by the City) is sufficient to cover 1.50 times the maximum annual principal and interest requirements on the Outstanding Bonds, and the proposed parity lien bonds, or (iv) the additional bonds are issued for the purpose of refunding Outstanding Bonds and the average annual principal and interest requirements on the refunding bonds is equal to or less than the average annual principal and interest requirements on the Outstanding Bonds refunded thereby. Nothing herein shall prevent the City from issuing Bonds payable from the Pledged Revenues and the Special T� Fund and having a lien thereon which is junior and subordinate to the lien of the Bonds authorized herein." 8.03, Except as specifically amended and supplemented by this Resolutivn, a11 of the provisions of the Original Resolution remain in full force and effect. Malt Beverage License Transfer— Jackalope. A public hearin� was held on a request for transfer for an on-off sale malt beverage license from the Jackalope Lounge (Maa� Fjelstad, owner) to the Dakota Pub (Randy Hope and Bill Thelen, owners); legal description — E25' of Lots 20 and 21 in Block 3 of Original Plat Addition, also known as 311 Third Street. All present were given an opportunity to be heard. A motion was made by McClemans, seconded by Whaley, to approve the transfer. All members voted yes; motion carried. Resolution No. 49-03 — Dakota Pub Onerating Agreement. A motion was made by Bozied, seconded by Bezdichek, to approve Resolution No. 49-03, a resolution authorizing the City Manager to enter into an operating agreement between the City of Brookings and the Dakota Pub, Randy Hope and Bill Thelen, owners, legal description - E25' of Lots 20 and 21 in Block 3 of Original Plat Addition, also known as 3 i 1 Third Street. All members voted yes; motion carried. Resolution No. 49-03 Dakota Pub Wine Operating Agreement BE IT RESOLVED by the city of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement between the City of Brookings and Dakota Pub, Randy Hope and Bill Thelen, owners, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at Dakota Pub. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which sha11 be for a period of ten years with a renewal in five (5) years. Video Lottery License Reauest Dakota Pub. A motion was made by McClemans, seconded by Whaley, to approve a video lottery license request from Dakota Pub, Randy Hope and Bill Thelen, owners, legal description - E25' of Lots 20 and 21 in Block 3 of 11 � Originat Ptat Addition, also known as 311 Third Street. All members voted yes; motion carried. Ordinance No. 21-03—Zoning Regulations. A public hearing was held on Ordinance No. 21-03, an ordinance amending the City of Brookings Zoning Regulations. All present were given an opportunity to be heard. A motion was made by Bezdichek, seconded by Whaley, to approve Ordinance No. 21-03. All members voted yes; motion carried. Ordinance No. 22-03— Subdivision Regulations. A public hearing was held on Ordinance No. 22-03, an ordinance amending the City of Brookings Subdivision Regulat'rons. All present were given an opportunity to be heard. A motion was made by Bozied, seconded by MeClemans, to approve Ordinance No. 22-03. A11 members voted yes; motion carried. Ordinance No. 23-03 — 1921 Former Middle School Buildin$. A public hearing was held on Ordinance No. 23-03, an ordinance amending the Final Development Plan for Lots 101 and 103, Block 1, Second Addition (1921 former Middle School Building). All present were given an opportunity to be heard. A motion was made by McClemans, seconded by Reed, to approve Ordinance No. 23-03. All members voted yes; except Bozied; motion carried. Ordinance No. 24-03 — Communitv Center. A public hearing was hetd on Ordinance No. 24-03, an ordinance amending the zoning ordinance pertaining to a Community Center in the Business B-2 District. A11 present were given an opportunity to be heard. A motion was made by Whaley, seconded by Bezdichek, to approve Ordinance No. 24-03. All members voted yes; motion carried. Ordinance No. 25-03—Code of Ordinances Amendment— Sec. 78-32. Introduction and first reading was held on Ordinance No. 25-03, an ordinance amending Section 78-32 of the Code of Ordinances of the City of Brookings, South Dakota to Comply with the "Revenue Neutral" Requirements of SDCL 10-52-16 and pertaining to the Municipal Sales and Service and Use T� in the City of Brookings, South Dakota. All present were given an opportunity to be heard. A motion was made by Reed, seconded by McClemans, to approve the first reading of Ordinance 25-03. All members voted yes; motion c�rried. Second reading to be held September 9, 2003. Ordinance No. 27-03 — Code of Ordinances Amendment— Sec.78-38. Introduction and first reading was held on Ordinance No. 27-03, an ordinance amending Section 78-38 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to the use of Municipal Sales and Service and Use Tax Revenue in the City of Brookings, South Dakota. All present were given an opportunity to be heard. A motion was made by Bezdichek, seconded by Whaley, to approve the first reading of Ordinance 27-03. All members voted yes; motion carried. Second reading to be held September 9, 2003. Ordinance No. 26-03—Code of Ordinances Amendment—Chaater 74. Introduction and first reading was held on Ordinance No. 26-03, an ordinance amending Chapter 74 of the Ordinances of the City of Brookings and pertaining to sidewalk advertising and decor and the placement, display and sale of inerchandise, food and beverages and outdoor dining on sidewalks in the Central Business District of the City of Brookings. All present were given an opportunity to be heard. A motion was made by Bozied, seconded by Reed, to approve the first reading of Ordinance 26-03. A11 members voted yes; motion carried. Second reading to be held September 9, 2003. Rs,esolution No. 45-03 — Building Permit Fees. A motion was made by Bozied, seconded by McClemans, to approve Resolut2on No. 45-03, a resolution establishing building permit construction fees for the City of Brookings. All members voted yes; motion carried. Resolution No. 45-03 A Resolution Establishing Building Permit Application Fees For The City Of Brookings, South Dakota. BE IT RESOLVED that the application fees for permits required under Section 22-35 of City Code sha11 be as follows: 120 a. For a permit for the construction or alteration of a building or structure the fee shall be the sum of ten dollars ($10.00) where the estimated cost of construction or alteration is less than five hundred ($500.00); fifteen dollars ($15.00) where the cost of construction or alteration is five hundred dollars ($500.00) and less than one thousand dollars ($1,000.00). For each additional one thousand dollars($1,000.00) or fraction thereof of construction or alteration costs up to fifteen thousand dollars ($15,000.00), the rate sha11 be three dollars ($3.00) per one thousand dollars ($1,000.00) of the estimated cost; for each additional one thousand dollars ($1,000.00) or fraction thereof up to fifty thousand dollars ($50,000.00) the rate shall be one dollar and fifty cents ($1.50) per one thousand dollars ($1,000.00) of the estimated cost; and for each additional one thousand dollars ($1,000.00) or fraction thereof exceeding fifty thousand dollars ($50,000.00) the rate shall be seventy-five cents ($0.75) per one thousand dollars ($1,000.00). b. For a permit for the demolition of a building or structure the fee shall be ten dollars ($10.00). c. For a permit to move a mobile home, manufactured home, or modular home into or to a different lot within a mobile home park, the fee shall be fifty dollars ($50.00). d. For a permit to move a building into or within the City of Brookings, the fee shall be fifty dollars ($50.00). Resolution No. 09-03 — Planning and Zoning Fees. A motion was made by Bezdichek, seconded by Bozied, to approve Resolution No. 09-03, a resolution establishing planning and zoning fees for the City of Brookings. All members voted yes; motion carried. Resolution No. 09-03 A Resolution Revising Certain Planning And Zoning Application Fees Of The City Of Brookings, South Dakota. BE IT RESOLVED that the planning and zoning application fees required under Section 66- 3 of Chapter 66 of the Code of Ordinances of the City of Brookings shall be revised as follows: 66-3(b)(1) Change of Zone $150.00 ? 66-3(b)(2) Planned Development District $150.00 66-3(b)(3) Final Development Plan $50.00 66-3(b)(4) Major Amendment $150.00 66-3(b)(5) Minor Amendment $50.00 66-3(b)(6) Board of Adjustment $60.00 66-3(b)(7) Plats: Preliminary $50.00+$1.00/lot over 20 lots or $1.00lacre over 1 acre Final $50.00 66-3(b)(8) Vacation $100.00 66-3(b)(9) I-1 R Site Plan $60.00 66-3(b)(10) Conditional Use $100.00 66-3(b)(11) Zoning and Use Registration Permit $25.00 Advertising Rights Agreement— Brookings Soccer Association. A motion was made hy McClemans, seconded by Whaley, to approve an agreement with the Brookings Soccer Association for advertising rights at the new Fishback Soccer Park. All members voted yes; motion carried. Aunointment of Ez-otTicio Members to Utilitv & Hosnital Board. A motion was made by Munsterman, seconded by McClemans, to appoint Tom Bozied and Tom Bezdichek as ex-officio members to the Utility Board and Tim Reed and Julie Whaley as ex-officio members to the Hospital Board. All members voted yes; motion carried. Briefin�. City Manager Michael Williams provided a briefing on the September 9�' agenda items. Eaecutive Session. A motion was made by Munsterman, seconded by Bozied, to enter executive session at 7:37 p.m. for the purpose of discussing the research park site location 121 with the City Attorney, City Manager and City Clerk present. All present voted yes; motion carried. A motion was made by Reed, seconded by Whaley, to teave executive session at 8:01. All present voted yes; motion carried. Adiournment. A motion was made by Reed, seconded by Munsterman, to adjourn. All present voted yes; motion carried. Meeting adjourned at 8:01 p.m. CITY OF BROOKINGS � c . M terman, Mayor ST: 9 c �oar'�,��°l1'0.� H21 �9��9��p� C): � '� O: �u��D • tl�p.� � Gpy.. .• hornes, City Cler 'r'