HomeMy WebLinkAboutCCMinutes_2005_02_08 317
Brookings City Council
Tuesday, February 8, 2005
The Brookings City Council held an action meeting on Tuesday, February 8, 2005 at 5:30 p.m., at
City Hall with the following members present: Mayor Scott Munsterman, Council Members Tom
Bezdichek, Tom Bozied, Tim Reed, Julie Whaley, Doris Roden, and Mike McClemans. City
Manager Alan Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also
present.
Consent Agenda. Action to award bids on the fire truck was taken off the agenda. An executive
session to consult with legal counsel on pending contractual issues was added to the agenda. A
motion was made by Reed, seconded by Roden,to approve the following consent agenda items:
1. A�enda: The agenda was adopted as amended.
2. Minutes: The January 4, 11 and 19, 2005 minutes were approved.
3. Resolution No. 10-05: Action to approve Resolution No. 10-05, a Resolution authorizing
Final Change Order(CCO#1 Final) for 2004-06STI, Schedule B: (Asphalt FOB Plant) Bowes
Construction, Inc.;
RESOLUTION NO. 10-OS
A RESOLUTION AUTHORIZING FINAL CHANGE ORDER(CCO#1 FINAL)
FOR 2004-06STI,SCHEDULE B: (ASPHALT FOB PLANT�BOWES
CONSTRUCTION,INC.
Be It Resolved by the City Council that the following change order be allowed for 2004-
06STI: Schedule B: Construction Change Order Number 1 Final. Adjust estimated
quantities as"as build"for a total decrease of$17,530.42.
4. Bids—Police Cars: Sealed bids were received on Jan. 25,2005 for three (3)vehicles to be
utilized as marked patrol vehicles: Einspahr Auto Plaza, Inc., Brookings, SD, 2005 Ford
Crown Victoria- $22,037, 2005 Dodge Durango SUV - $24,270, and 2005 Ford Expedition
SUV - $25,588. The following bids were awarded: two (2)2005 Ford Croum Victoria Police
vehicles at$22,037 per vehicle, and one (1) 2005 Dodge Durango SUV at $24,270 from
Einspahr's Auto Plaza.
5. Bids—Animal Control: Sealed bids were received on Jan. 25,2005 for a 2005 %z ton, four-
wheel drive pickup truck for Animal Control: Brookings Auto Mall,Brookings, SD,2005
Chevrolet Silverado 1500 for$22,546.60 and Einspahr's Auto Plaza,Brookings, SD, 2005
Dodge Ram 1500 for$21,316 and 2005 Ford F-150 for$21,550. The bid was awaxded to
Einspahr's Auto Plaza for a 2005 Dodge Ram 1500 pickup txuck for$21,316.
6. Abatement: A $648.26 abatement of 2004 taxes was approved for Mark and TeJay
Kuechenmeister for Lot 26, and N 20' of Lot 25, Block 1, Camelot Square.
7. Bids—Air Comnressor/Fire: Sealed bids were received on Jan. 25, 2005 for a breathing air
compressor system with air purification to Grade E with storage, an enclosed fill station, and a
remote fill: Ed M. Feld Equipment Co. Inc, base bid$32,055, deduct$1,260 and Alex Air
Apparatus, Alexandria, MN, base bid$28,896. The bid was awarded to Alex Air Apparatus
for$28,896.
8. Abatement: A $52.86 abatement of 2004 taxes was approved for Amy Kirchhevel for a
building on leased site at Lot 5, Block 11, Telkamp's Addition.
9. Warrant�: The Mayor was authorized to sign a warranty easement deed for
Conservation Easement Tract 1 to be entered into the Wetland Reserve Program. The �
property is described as the west side of l�Iedary Avenue South between 20th Street�So:�d
32nd Street So. This is a 30-year easement and provides a one-time payment to the city of'
$25,339.04 to be credited to the drainage account. In return,the City is responsible for
managing the property as a wetland reserve.
10. Resolution No. 08-05: Action to approve Resolution No. 08-05, a Resolution authorizing
Fina1 Change Order(CCO#1 Final) for Brookings City Hall Reception Area and Office
Remodel Project—Clark Drew Construction Inc.;
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RESOLUTION NO.08-OS
A RESOLUTION AUTHORIZING FINAL CHANGE ORDER(CCO#1 FINAL)
FOR BROOKINGS CITY HALL RECEPTION AREA AND OFFICE REMODEL
PROJECT-CLARK DREW CONSTRUCTION,INC.
Be It Resolved by the City Council that the following change order be allowed for
Brookings City Hall Reception Area and Office Remodel Project: Construction Change
Order Number 1 Final-Adjust estimated quantities as"as build"for a total change of
$0.00.
11. Resolution No. 09-05: Action to approve Resolution No. 09-05, a Resolution authorizing
Final Change Order(CCO#1 Final) for Brookings City Building Abatement Project
Remediation Specialists, Inc.;
RESOLUTION NO.09-05
A RESOLUTION AUTHORIZING FINAL CHANGE ORDER(CCO#1 FINAL)
FOR BROOKINGS CITY BUILDING ABATEMENT PROJECT-
REMEDIATION SPECIALISTS,INC.
Be It Resolved by the City Council that the following change order be allowed for
Brookings City Building Abatement Project: Construction Change Order Number 1
Final-Adjust estimated quantities as"as build"for a total change of$0.00.
12. Resolution No. 11-05: Action to approve Resolution No. 11-05, amending the 2005 budget;
RESOLUTION NO. 11-OS
A RESOLUTION AMENDING THE 2005 BUDGET
Whereas,There Is A Need to Adjust the Budget to Respond to the Actual Revenues and
Expenditures Being Experienced In Fiscal Year 2005,And
Now Therefore,Be It Resolved by the City Council that the City Manager is authorized
to make the following budget adjushnents:
Budget Amendment#2,2005 Budget
Budget Line Department Adjustment $
Health Insurance
101403512300 City Clerk (660)
101406512300 City Manager (337)
101414512300 Human Resources (454)
101415512300 Finance (779)
101419512300 Engineering (14,670)
101421512300 Police (21,350)
101422512300 Fire (5,164)
101431512300 Street (4,375)
101442512300 Animal Control (396)
101451512300 Recreation (602)
101452512300 Park (3,502)
101454512300 Forestry 4,038
101455512300 Library (1,749)
Subtotal $ (50,000)
101405585697 CM Contingency 50,000
Total (0)
13. Bids—Animal Stalls: Sealed bids were received on Jan. 25, 2005: Sunderman Mfg.
Company, Baltic, SD: Option#1- $36,745.00; Service Equipment, Inc., Paynesville,MN:
Option#2- $47,531.00; and Schwartz Construction, White, SD: Option#1-$73,988.16:
Option#2-$72, 800.95. The bid was awarded to Sunderman Mfg. Co., Option 1, for
$36,745.
Dr.Martin Luther King Dav Awards. The following winners were recognized: K-3 Poster 1�`
Place,Erica Bien,$50.00 and Lydia Lucchesi,Jenny Hwang,Kilian Surat,and Ashley Duffy,Honorable
Mention; 4-5`�Grade 1 St Place Poster, Lynn Yen, $100.00 and Lauren DeBates and Philip Hanson,
Honorable Mention; Middle School Essay lst Place, Megan Ruane, $150.00; and High School lst
Place Essay, Danny Andrawis, $200.00.
Preliminarv Plat—Indian Hills. A public hearing was held on a preliminary plat for Lots 120-131,
Onaka Village and Lots 25-43, Wahpeton Village, Indian Hills Addition. All present were given an
opportunity to be heard. A motion was made by Whaley, seconded by Reed,to approve the plat. All
present voted yes;motion carried.
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Ordinance No. 02-OS—Sneed Zone. A motion was made by Roden, seconded by Whaley, to
approve first reading of Ordinance No. 02-05, an Ordinance amending Article V of Chapter 82 of the
Code of Ordinances of the City of Brookings and pertaining to Speed Zones within certain
Amendments thereto. All present voted yes; motion carried. Second reading on 2/22/O5.
Ordinance No. 03-OS—Budget Amendment. A motion was made by Roden, seconded by Whaley,
to approve first reading of Ordinance No. 03-05, an Ordinance entitled "An Ordinance Authorizing a
Supplemental Appropriation to the 2005 Budget for the Purpose of Providing for Additional Funds
for the Operation of the City." All present voted yes; motion carried. Second reading on 2/22/O5.
Resolution No. 12-OS—Municinal Electric Svstem. A motion was made by Reed, seconded by
Bozied,to approve Resolution No. 12-05, a Resolution relating to the improvement of the Municipal
Electric System; creating special accounts for the administration of the moneys derived therefrom;
authorizing and directing the issuance and sale of revenue bonds to pay the cost of improvements and
defining the terms and manner of payment of the bond and the security thereof. All present voted
yes; motion carried.
RESOLUTION NO. 12-OS
RESOLUTION RELATING TO THE IMPROVEMENT OF THE MUNICIPAL
ELECTRIC SYSTEM;CREATING SPECIAL ACCOUNTS FOR THE
ADMINISTRATION OF THE MONEYS DERIVED THEREFROM;AUTHORIZING
AND DIRECTING THE ISSUANCE AND SALE OF REVENUE BONDS TO PAY THE
COST OF IMPROVEMENTS AND DEFINING THE TERMS AND MANNER OF
PAYMENT OF THE BOND AND THE SECURITY THEREOF.
BE IT RESOLVED by the City Council of the City of Brookings,South Dakota(the"City"),as
follows:
SECTION 1. RECITALS,FINDINGS AND AUTHORIZATION
1.01 Recitals. The City of Brookings,in the County of Brookings and State of South Dakota
(the"City"),is a political subdivision of the State of South Dakota and a body corporate and
politic. 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.
Pursuant to SDCL 9-39-1,et.seq.,the City currently operates an electrical power utility(the
"Electric Utility"),for the purpose of providing electrical power for municipal,industrial and
domestic purposes. As provided in SDCL 9-39-6,the City has placed the management and control
of the Electric Utility in the hands of the Brookings Municipal Utilities Board(the"Board").
The City is authorized to borrow money and issue its revenue bonds under South Dakota Codified
Law,Chapters 9-40 and 6-8B(the"Act"),in order to defray the cost of acquiring and constructing
improvements to the Electric Utility,consisting of improvements to the transmission,distribution
and substation facilities(the"Improvements")described on Exhibit A hereto. The City is
authorized to acquire the Improvements,to issue its utility revenue bonds(the"Bonds")in order to
defray the cost thereof,and to make all pledges,covenants and agreements authorized by law for
the protection of the owner of the Bond including,without limitation,those covenants set forkh in
Section 9-40-16 and 9-40-17 of the Act. The Bond shall be payable solely from the revenue or
income derived from the operation of the Improvements.
1.02 Findines. As authorized by the Act,the City has determined that it is necessary and
desirable to issue its utility revenue bond in an aggregate principal amount now estimated not to
exceed the sum of$1,600,000(i)to fmance the acquisition,construction and equipping of the
Improvements,(ii)to engage engineering and other consultants as necessary to develop
specifications for such Improvements,and(iii)to pay bond counsel fees and other costs associated
with the issuance of the Bond.
1.03 Authorization of the Bond. There is hereby authorized and directed to be issued a City of
Brookings,South Dakota,Electric Utility Revenue Bond,Series 2005 in a princ'ipal amount of up
to$1,600,000(the"Series 2005 Bond"or"Bond"),for the purposes of paying part of the cost of
the Improvements. The Series 2005 Bond is issued under the authority of Chapters 9-40 and 6-8B
of the South Dakota Codified Laws,as amended,and said Bonds are to be sold at private sale,and
Chapter 9-40 is hereby incorporated herein as provided by SDCL 9-40-19.
In connection with the authorization,issuance and delivery of the Bond,the Mayor,City Clerk,
City Attomey and other officers of the City shall be authorized to enter into,execute and deliver
the Bond and such other documents,agreements or instruments as may be necessary to make
covenants and recite facts required to demonstrate the validity and enforceability of the Bond
under the laws of the State of South Dakota and to assure the exclusion of the interest thereon
from the gross income of the owner of the Bond under the Internal Revenue Code of 1986,as
amended,and to effectuate the terms and intent of this Resolution.
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SECTION 2. SALE OF BONDS
2.01 The sale of the Series 2005 Bond to First Bank&Trust,of Brookings, South Dakota(the
"Bond Purchaser"),at par,plus interest accrued to the date of delivery of the Bond, is hereby
approved and the officers of the City are authorized and directed to do any and all acts necessary
to conclude delivery of the Bond to said purchaser,upon receipt of the purchase price,as soon
after adoption of this Resolution as is convenient.
SECTION 3. TERMS.EXECUTION AND DELIVERY
3.01 Date,Maturitv,Interest Rate and Redemption. The Series 2005 Bond initially shall be
one fully registered Bond,without coupons,numbered R-1 in the principal amount of up to
$1,600,000,and shall be dated as of the date of its sale and delivery to the Purchaser and full
payment is made therefore. The Series 2005 Bond shall bear interest at a rate not to exceed 5.95%
per annum,shall mature on March 1,2036(the"Maturity Date"),and shall be subject to
redemption as set forth in the form of Bond hereinafter referred to.
3.02 Form of Bonds. The Bond shall be printed in substantially the form on file with the City
Clerk. The City Clerk shall keep the form of Bond on file in the office of the City Clerk for
inspection by the public during regular business hours.
3.03 Execution,Authentication and Deliverv.The Bond shall be prepared under the direction
of the Finance 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 Bond shall cease to be such officer before the delivery thereof,such signature or facsimile
shall nevertheless be valid and sufficient for all purposes,the same as if he had remained in office
until delivery.
3.04 Registration.Transfer and Exchange of Bonds. The Bond shall be transferable only upon
the registration books maintained by the Finance Manager of the City by the registered owner
thereof in person or by his attorney duly authorized in writing,upon surrender thereof at the
principal office of the Finance Manager of the City together with a written instrument of transfer
satisfactory to the Finance Manager duly executed by the registered owner or his duly authorized
attorney. The City and the Finance Manager may deem and treat the person in whose name any
Bond shall be registered as the absolute owner of such Bond,whether such Bond shall be overdue
or not,for the purpose of receiving payment of,or on account of,the principal of and interest on
said Bond and for all other purposes,and all such payments so made to any such registered owner
or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond
to the extent of the sum or sums so paid.
3.05 Appointment of Initial Re istrar. The City hereby appoints the Finance Manager of the
City as bond registrar,transfer agent and paying agent(the"Registrar")for the Bond.
SECTION 4.ELECTRIC UTILITY REVENUE FUND; SECURITY AND RATES
4.01 Establishment of Accounts Within the Electric Utility Fund. There shall be established
certain accounts designated as the Electric Utility Revenue Accounts(the"Accounts")within the
existing Electric Utility Fund established by the Board(the"Electric Fund"). The Accounts shall
be maintained as separate and speciai bookkeeping accounts on the official books of the City until
the Bond and any additional bonds payable from the Net Revenues of the Improvements,as
provided in Sections 4.02 through 4.04 hereof and interest and redemption premiums due thereon
have been fully paid,or the City's obligation with reference to the Bond has been dischazged as
provided in this Resolution.
"Net Revenues of the Improvements",as used herein,shall be the excess of revenues or income
from the Improvements remaining from time to time after first paying all reasonable and current
e�cpenses of maintenance,repairs,replacements,and operation of the Improvements.
The Accounts shall be as designated and described in Sections 4.03 to 4.08,and shall be used to
segregate income and expenses received,paid and accrued for the respective purposes described in
those Sections.The gross revenues received in the Accounts shall be apportioned monthly or as
soon as possible after the first day of each month,commencing the first calendar month following
the delivery of the Bond,which apportionment is hereinafter referred to as the"monthly
apportionment."
4.02 Revenues Pled�ed and Appropriated.As authorized pursuant to SDCL 9-40-15,all gross
revenues derived&om the operation of the Improvements are directed to be segregated and
appropriated and sha11 be credited to the Accounts as received,and the Net Revenues of the
Improvements are hereby irrevocably pledged to the holder of the Bond for the payment of
principal and interest thereon. The City shall account for all current expenses of maintenance,
repairs,replacements and operation of the Improvements as provided in this Resolution. Except
as expressly stated in this Resolution,the pledges,appropriations,covenants and agreements of
the City and the Accounts established within the Electric Fund by the Resolution apply only to the
Improvements,its operations,revenues and expenses. Such gross revenues shall include all gross
income and receipts from rates,fees,charges and rentals imposed for the availability,benefit and
use of the Improvements as now constituted and of all replacements and improvements thereof and
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additions thereto,and from penalties and interest thereon,and from any sales of property acquired
for the Improvements and all income received from the investment of such gross revenues;but not
any taxes levied or amounts borrowed or received as grants for construction of any part of the
Improvements.
4.03 Construction Account. The Construction Account shail be used only to pay as incurred
and allowed costs which under generally accepted accounting principles are capital costs of the
Improvements,and of such future acquisitions,reconstructions,improvements,betterments or
extensions of the Improvements as may be authorized in accordance with law;including but not
limited to payments due for work and materials performed and delivered under construction
contracts,architectural,engineering,inspection,supervision,fiscal and legal expenses,the cost of
lands,easements,interest accruing on Bond during the first year following the date of its delivery,
if and to the extent that the Revenue Bond Account is not sufficient for payment of such interest,
reimbursement of advances made from other City funds,and all other expenses incurred in
connection with the construction and financing of any such undertaking.To the Construction
Account shall be credited as received all proceeds of Bond,except amounts appropriated to the
Revenue Bond Account under Section 4.05 and any amount to be deposited to the Reserve
Account under Section 4.06,and all other funds appropriated by the City for the constxuction and
acquisition of the Improvements,and any proceeds in excess of the amount necessary for that
purpose shall be transferred to the Revenue Bond Account.No amount shall be expended from the
construction account unless contracts have been entered into and completion bonds furnished in an
amount sufficient to ensure completion of the Improvements at a cost not exceeding the amount
then on hand for such purpose.
4.04 Operating Account.On each monthly apportionment there shall first be set aside and
credited to the Operating Account,as a first charge on the gross revenues of the Improvements,
such amount as may be required over and above the balance then held in the Operating Account to
pay the reasonable and necessary operating expenses of the Improvements which are then due and
payable,or are to be paid prior to the next monthly apportionment. The term"operating expenses"
shall mean the current expenses,paid or accrued,of operation,maintenance and current repair of
the Improvements,calculated in accordance with generally accepted accounting principles,and
shall include,without limitation,administrative expenses of the City relating solely to the
Improvements,premiums for insurance on the properties thereof, labor and the cost of materials
and supplies used for current operation and for maintenance,and charges for the accumulation of
appropriate reserves for current expenses which are not recurrent monthly but may reasonably be
expected to be incurred in accordance with generally accepted accounting principles. Such
operating expenses shall not include any allowance for depreciation or renewals or replacements
of capital assets of the Improvements and shall not include any portion of the salaries or wages
paid to any officer or employee of the City,except such portion as shall represent reasonable
compensation for the performance of duties necessary to the operation of the Improvements,nor
any amount properly payable from any other account of the Electric Fund.Moneys in the
Operating Account shall be used solely for the payment of current operating expenses of the
Improvements,as herein defined.A sufficient balance shall be kept therein as working capital to
cover the cost of one month's current operation. The Net Revenues of the Improvements,as
referred to in this Resolution,are hereby defined to include the entire amount of such gross
revenues remaining after each such monthly apportionment,after crediting to the Operating
Account the amount required hereby.
4.05 Revenue Bond Account.Upon each monthly apportionment,there shall be set aside and
credited to the Revenue Bond Account out of the Net Revenues of the Improvements an amount
equal to not less than one-twelfth of the total sum of the principal and interest to become due
within the then next succeeding twelve months on the Bond.Moneys from time to time held in the
Revenue Bond Account shall be disbursed only to meet payments of principal and interest on
Bond as such payments become due;provided,that on any date when the outstanding Bond is due
or prepayable by its terms,if the amount then on hand in the Revenue Bond Account,together
with the balance then on hand in the Reserve Account,is sufficient,with other moneys available
for the purpose,to pay the Bond and the interest accrued thereon in full,it may be used for that
purpose.If any payment of principal or interest becomes due when moneys in the Revenue Bond
Account are temporarily insufficient therefore,such payment shall be advanced out of any Net
Revenues of the Improvements theretofore segregated and then on hand in the Reserve Account,
the Replacement and Depreciation Account or the Surplus Account.In the event that sufficient
moneys are not available from the aforementioned sources,the City,to the extent it may at the
time legally do so,may,but shall not be required to,temporarily advance moneys to the Revenue
Bond Account from other funds of the City on hand and legally available for the purpose,but any
such advance shall be repaid from Net Revenues of the Improvements within 24 months.
4.06 Reserve Account.On a monthly basis,the City shall pay into the Reserve Account an
amount equal to 10%of the maximum debt service due in any future calendar year on,the Bond.
Said balance shall be maintained by such additional credits to the Reserve Account as may be
necessary.Moneys on hand in the Reserve Account shall be used only to pay maturing principal
and interest when other moneys in the Revenue Bond Account are insufficient therefore. All
income derived from the investment of amounts in the Reserve Account shall be credited to the
Reserve Account until the aggregate balance in the Reserve Account is equal to the Reserve
Requirement,and thereafter all such investment income shall be transferred,as received,to the
Revenue Bond Account.
� � �
4.07 Replacement and Depreciation Account.T'here shall next be set aside and credited,upon
each monthly apportionment,to the Replacement and Depreciation Account such portion of the
Net Revenues of the Improvements,in excess of the current requirements of the Revenue Bond
Account and the Reserve Account(which portion of the Net Revenues of the Improvements is
referred to herein as"Surplus Net Revenues"),as the Board shall determine to be required for the
accumulation of a reasonable reserve for renewal of worn out,obsolete or damaged properties and
equipment of the Improvements,which reserve shall be accumulated and maintained.Moneys in
this account shall be used only for the purposes above stated or,if so directed by the Board,to
redeem the Bond to the extent prepayable according to its terms,to pay principal or interest when
due thereon as required in Section 4.05 hereof,or to pay the cost of construction and acquisition of
the Improvements;provided,that in the event that the City shall hereafter issue bonds for the
purpose of financing the construction and installation of additional improvements or additions to
the Improvements,but which additional bonds cannot,upon the terms and conditions provided
herein,be payable from the Revenue Bond Account, Surplus Net Revenues from time to time
received may be segregated and paid into one or more separate and additional accounts from the
payment of such bonds and interest thereon, in advance of payments required to be made into the
Replacement and Depreciation Account.
4.08 Surplus Account.Any amount of the Surplus Net Revenues of the Improvements from
time to time remaining a8er the above required applications thereof shall be credited to the
Surplus Account,and the moneys from time to time in that account,when not required to restore a
current deficiency in the Revenue Bond Account as provided in Section 4.05 hereof,may be used
for any of the following purposes and not otherwise:
(a) To redeem and prepay the Bond when and as such Bond becomes prepayable according
to its terms;
(b) To purchase the Bond on the open market,whether or not the Bond so purchased may
then be prepayable according to its terms;and,if the Reserve Account is then funded to
the full amount required to be maintained therein,and the balances in the Revenue Bond
Account and the Replacement and Depreciation Account are sufficient to meet all
payments required or reasonably anticipated to be made therefrom prior to the end of the
current fiscal year,then;
(c) To pay for repairs of or for the construction and installation of improvements or additions
to the Improvements;and,if the Reserve Account is then funded to the full amount
required to be maintained therein,and the balances in the Revenue Bond Account and the
Replacement and Depreciation Account are sufficient to meet all payments required or
reasonably anticipated to be made therefrom prior to the end of the then current fiscal
year,then:
(d) To be held as a reserve for redemption and prepayment of the Bond to the extent not then
but will later prepayable according to its terms;or
(e) To be used for any other authorized municipal purpose designated by the Board.
No moneys shall at any time be transferred from the Accounts to any other fund or account of the
City,nor shall such moneys at any time be loaned to other municipal funds or invested in
warrants,special improvements bonds or other obligations payable from other funds,except as
provided in this Section 4.08.
4.09 Deposit and Investment of Funds.The Finance Manager shall cause all moneys to be
deposited as provided in South Dakota Law.
4.10 Statutory Lien.There shall pursuant to SDCL 9-40-25 be a statutory mortgage lien upon
the Improvements in favor of and for the equal benefit of the lawful holder of the Bond issued
pursuant to SDCL 9-40,except no such lien shall attach to or become a charge upon or against any
property or utility or any part thereof previously owned by the City. The Statutory Lien shall
continue until the Bond is paid in full.
SECTION 5. USE OF PROCEEDS
5.01 Use of Proceeds. The City shall apply the proceeds of the Series 2005 Bond solely to the
financing,refmancing or reimbursement of the costs of the Improvements as set forth in Exhibit A
hereto.If any proceeds of the Series 2005 Bond are to be used to reimburse the City for
Improvements costs paid prior to the date of this Resolution and in a prior fiscal year of the City,
the City represents that at the time it incurred such costs it intended to finance them with tax-
exempt debt.
5.02 Improvements Presentations and Covenants. The City hereby represents to and
covenants with the holder from time to time of the Series 2005 Bond:
(a) all construction of the Improvements has complied and will comply with all federal and
state standards;
(b) all future construction of the Improvements will be done only pursuant to fixed price
construction contracts. The City shall obtain a performance and payment bond from the
contractor for each construction contract in the amount of 100%of the construction price
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and ensure that such bond is maintained until construction is completed to the City's and
the Bond Purchaser's satisfaction;and
(c) all future construction will be done in accordance with plans and specifications on file
with the City,provided that changes may be made in such plans and specifications with
the approval of the City and the Purchaser.
SECTION 6.OTHER COVENANTS.
6.01 General.The City covenants and agrees that until the Bond is fully discharged as
provided in this Resolution,it will continue to hold,maintain and operate the Improvements as a
public Improvements and convenience,free from all liens thereon or on the income therefrom
other than the liens herein granted or provided for,will observe prudent Improvements practices,
and will maintain,expend and account for the several Accounts therein as provided in Section 4.
The City will cause the Improvement to be constructed in accordance with plans and specifications
hereto prepared and will not enter into contracts in excess of the amount provided for such
purpose.
6.02 Competin�Service.Until the Bond is fully paid with interest,the City will not establish
or authorize the establishment of or grant a franchise for the operation of any other system for the
public supply of service or services in competition with any or all of the services supplied by the
facilities of the Improvements.
6.03 Bi1linQS.The charges for services provided by the Improvements will be billed at least
monthly,and if the bill is not paid within sixty days of the date of billing,or if the customer fails
to comply with all rules and regulations established for the Improvements within sixty days after
notice of violation thereof(which notice shall be given promptly upon discovery of any such
violation),the service to the premises involved shall be discontinued and shall not be resumed
until payment of all past-due bills for service provided by the Improvements and compliance with
all such rules and regulations.The City may reduce the number of days before the service will be
disconnected from sixty to any lesser number of days by ordinance or resolution.The City shall
take all appropriate legal action to collect the unpaid charges.The City shall follow the
procedures,if any,set by South Dakota Codified Laws for disconnection of service during the
winter months.
6.04 Rates and Charees.The City through the Board will maintain,revise,charge and collect
rates and other charges for service furnished and made available by the Improvements,according
to schedules such that the gross revenues derived therefrom will be sufficient,when combined
with other available funds,to pay when due all expenses of the operation and maintenance of the
Improvements and all principal of and all interest on the Bond,to provide for the establishment
and reserves therefore,and to provide for an allowance for recurring renewals and replacements of
Improvements,and to fulfill the terms of all other agreements with the registered owners of the
City's bonds including the interest on any general obligation bonds authorized to conslruct or
acquire or improve such original Improvements and including the necessary debt service funds
required to be provided for the retirement of said bond issues,and including the interest and debt
service funds required annually to be paid or set aside on any refunding bonds issued to refund
such general bonds issued for the original construction or acquisition or improvement of said
Improvements, so extended,added to,or itnproved.
6.05 Insurance. The City will cany and maintain a reasonable amount of all-risk insurance on
its Electric Utility in amounts which would normally be carried by a private corporation engaged
in a similar type of business,and in the event of loss or damage,the City will use the proceeds of
such insurance in reconshuction and replacing the property damaged or destroyed,or,if such
reconstruction or replacement be unnecessary,the proceeds will be used to redeem Bonds. T'he
City,in operating its Electric Utility,will carry and maintain public liability and workmen's
compensation insurance in such amount or amounts as would normally be maintained by a private
corporation engaged in a similar type of business. All of the costs of such insurance shall be paid
as an operating cost out of the income and revenues of the Electric Utility of the City.
6.06 Fidelity Bonding. All employees of the City handling the funds and accounts of the
City's Electric Utility shall be bonded at all times in an amount equal to the total funds in their
possession or custody at any one time.
6.07 Books and Records. The City will furnish to the holder of the Series 2005 Bond,
annually,upon request,an operating budget of income and expenses. The City will keep proper
books,records and accounts in which complete and correct entries will be made of all transactions
relating to the Electric Utility of the City. The books will be kept by the City according to
generally accepted accounting principles as applicable to the operation of municipal utilities. If
required by the holder of the Series 2005 Bond,such books,records and accounts,at least once a
year,shall be properly audited by an independent public accountant employed for such purpose.
The City will furnish any holder of the Series 2005 Bond,on the written request of such holder,
and not more than ninety(90)days after the close of each fiscal year,a complete report of such
audit covering in reasonable detail the operarion of the Electric Urility during said year. Any such
holder shall have the right at all reasonable times to inspect the Electric Utility of the City and all
books,records,accounts and data of the City relating thereto.
6.08 Performance of Duties. The City will punctually perform all duties with respect to the
operation of its Electric Utility imposed upon the City by the Constitution and laws of the State of
South Dakota.
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6.09 Additional Bonds. As long as any of the Series 2005 Bond herein authorized remain
outstanding and unpaid,the City will not issue any additional bonds or other obligations having a
superior claim on the revenues arising from the operation of the Improvements of the City or any
part thereof,without the prior written consent of the holder of the Series 2005 Bond.
6.10 Qualified Ta�c-Exempt Obli at� ions. The City hereby designates the Series 2005 Bond as
a"qualified tax-exempt obligation"pursuant to Section 265(b)(3)of the Code.
SECTION 7. DEFAULT AND REMEDIES
7.01 Remedies.Any registered owner of the Bond shall have the right,either at law or in
equity,by suit,action or other proceedings,to protect and enforce the rights of the registered
owners thereof and to compel the performance of any and all of the covenants required herein to
be performed by the City,and its officers and employees,including but not limited to the fixing
and maintaining of rates,fees and charges and the collection and proper segregation of gross
revenues and the application and use thereof.The registered owner of a the Bond shall have the
right to direct the time,method and place of conducting any proceeding for any remedy available
to the bondholder or the exercise of any power conferred on it,and the right to waive a default in
the performance of any such covenant,and its consequences,except a default in the payment of
the principal of or interest on the Bond when due.However,nothing herein shall impair the
absolute and unconditional right of the registered owner of the Bond to receive payment of the
principal of and interest on the Bond as such principal and interest respectively become due,and
to institute suit for any such payment,any court having jurisdiction of the action may appoint a
receiver to administer the Improvements on behalf of the City with power to charge and collect
rates,fees and charges sufficient to provide for the payment of the operating expenses and for the
payment of any bonds or obligations outstanding against the improvements,and to apply the gross
revenues in conformity with this Resolution and the laws of the State of South Dakota. In the
event principal or interest on any bond shall become due and remain unpaid for a period of not less
than three months,such nonpayment shall constitute a default and the holders of the Bond shall
have all of the remedies provided by,powers and privileges granted by law for the enforcement of
their rights or for the collection of such principal and interest,including the right to declare all the
Bond due and payable forthwith.
SECTION 8. MISCELLANEOUS
8.01 Amendments. This Resolution and the Bond issued hereby may be amended by the City
with the written consent of the holder of the Bond.
8.02 Severabilitv. It is hereby declared that the sections,subsections,sentences,clauses and
all other parts of this Resolution,whether large or small,are severable and are not matters of
mutually essential inducement,it being the purpose of the City to provide funds for the purpose of
constructing the Improvements,as hereinbefore provided,and to do so in compliance in all � -."
respects with the Constitution and laws of the State of South Dakota,and if any one or more
sections,subsections, sentences,clauses or other parts of this Resolutions hall for any reason be
questioned in any court or shall be adjudged unconstitutional or invalid,such judgment shall not
impair or invalidate the remaining provisions of this Resolution,and such judgment shall be
confined in its operation to the specific provision or provisions so held unconstitutional or invalid,
and the same shall not be taken to affect or prejudice in any way the remaining provisions of this
Resolution.
8.03 Retention of Bond Counsel. The City hereby retains the firm of Davenport,Evans,
Hurwitz&Smith,LLP,Sioux Falls, South Dakota,to act as bond counsel with respect to the
Bond.
8.04 Effective Date. This Resolution,after final passage,shall become effective on the
twentieth day following publication thereof in the City's officially designated newspaper,unless
suspended by referendum. All provisions of ordinances,resolutions and other actions and
proceedings of the City which are in any way inconsistent with the terms and provisions of this
Resolution are repealed,amended and rescinded to the full extent necessary to give full force and
effect to the provisions of this Resolution. After becoming effective,this Resolution shall be
irrepealable until the Bond issued hereunder shall be paid in full,except that prior to issuance of
such Bond,this Resolution may be amended at any time by adoption of an administrative
resolution or ordinance.
Resolution No. 13-OS—2"d Pennv Funds/Research Park: A motion was made by Bozied,
seconded by McCiemans,to approve Resolution No. 13-OS which commits $100,000 of designated
2°a penny economic development funds for the Research Park Master Plan, provided the sta.te does
not match the city's funding for the project and with the understanding that there will be funding
partnerships from Brookings County, SDSU Foundation, Brookings Economic Development
Corporation and the Chamber of Commerce. All present voted yes; motion carried.
RESOLUTION NO. 13-05
COMMITMENT OF FUNDS FOR GROWTH PARTNERSHIP STUDY
WHEREAS,the creation of a Reseazch Park in the city of Brookings would be beneficial on local,
regional and state levels;and
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WHEREAS,a master plan is needed to qualify for further funding of the Research Park's
development;and
WHEREAS,funding the plan will require$200,000;half raised locally and half matched by the
state.
NOW,THEREFORE,BE IT RESOLVED,that the city of Brookings agrees to commit$100,000
in 2005 for the purpose of hiring the consultant for the Growth Partnership Study,provided the
state does not match the city's funding for the project and with the understanding that there will be
funding partnerships from Brookings County, SDSU Foundation,Brookings Economic
Development Corporation and the Chamber of Commerce. Said funds aze to be paid out of the
economic development reserves from the 2°d penny tax. T'he City will be provided with full
accountability and reporting at the end of the project.
Executive Session. A motion was made by McClemans, seconded by Bozied,to enter executive
session for purposes of consulting with legal counsel on contractual matters with the Council,
Manager, Attorney and Clerk present at 6:41 p.m. All present voted yes; motion carried. A motion
was made by Reed, seconded by Whaley,to leave session at 7:09 p.m. All present voted yes; motion
carried.
Adiourn. A motion was made by Reed, seconded by Whaley,to adjourn. All present voted yes;
motion carried. Meeting adjourned at 7:09 p.m.
Cit i
D. M erman,Mayor
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