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January 7, 2008
The Groton City Council met on the above date at 7pm at City Hall for their
first regular monthly meeting with the following members present: Hendrickson,
Nyberg, Heitmann, Hamilton, Anderson, and Mayor Olson presiding.
The minutes were read and approved on a motion by Hendrickson and seconded by
Heitmann. All members present voted aye.
The financial report was approved as read on a motion by Hamilton and seconded
by Nyberg. All members present voted aye.
The following bills were allowed for payment on a motion by Nyberg and seconded
by Hendrickson. All members present voted aye.
Executive Payroll 354.03 salaries
Administrative Payroll 4,492.84 salaries
Public Safety Payroll 6,486.42 salaries
Public Works Payroll 9,858.26 salaries
Cultural & Recreation Payroll 3,024.90 salaries
Wells Fargo Bank 8,557.49 WH & SS
City of Groton 661.98 prizes, postage
Consol Federal Credit Union 1,800.00 emp savings
SD Supplemental Retirement 400.00 emp retirement
Office of Child Support 336.00 child support
US Post Office 130.76 postage
Dakotacare 9,142.57 emp ins
AFLAC 497.28 emp ins
Northwestern Energy 1,867.87 power delivery
Wells Fargo Bank (Harland Cks) 34.30 deposit slips
Coco's 1,412.00 emp dinner
Discover 6.55 candy
Ken's Food Fair 567.96 gas, dsl, food, supplies
S&S Lumber 12,772.23 building materials
Office Max 215.44 ink, paper
Dyer, Julie 500.00 fam cr loan
Doeden, Toby 400.00 dual fuel sales incentive
Gibbs, Steve 400.00 dual fuel sales incentive
Kroll, Ron 400.00 dual fuel sales incentive
Snyder, Robert 300.00 hwh sales incentive
1st National Bank 5,287.72 EPA loan
1st National Bank 2,207.95 ne sewer loan
1st National Bank 7,670.84 main st sewer loan
1st National Bank 7,670.84 main st water loan
Aberdeen American News 838.55 ads
Altell 132.86 cell phone
Avera Queen of Peace 137.00 drug screens
Banyon Data 2,310.00 comp support
Blackmun, David Jr 104.00 hwh sales incentive
Blader, Margaret 300.00 hwh sales incentive
Blocker Construction 9,000.00 building labor
Border States 331.05 line materials
Business Forms 14.50 1099's
Cannon Tech 6,284.80 LM support, receivers, meters
Chase Visa 65.88 cassette player, antivirus
Clark Engineering 7,710.09 engineering
Coco's Restaurant 393.75 bus emp dinner
Colonial Research 130.62 ice melt
Cutler, Terry 510.00 hwh sales incentive
Dakota Electronics 118.00 batteries
Dakota Press 253.44 publishing
Daly, Diana 241.67 bus bookkeeping
Danfort & Meierhenry 800.00 bond counsel
SD Board of Certification 54.00 certificate renewals
DLL Public Finance 27,502.73 bkt trk loan
Doeden, Arlis 1,950.00 bus salary
Doeden, Toby 1,140.00 hwh sales incentive
Doubleday LP 9.39 LP book
Duanes 1,363.52 gas, dsl, repairs, prizes
Ecolab 158.00 pest control
Ellwein Brothers 5,010.80 beer
Evergreen 28.36 nitrogen
Gall's 597.89 uniforms
Groton Independent 241.16 publishing, cards
Groton Senior Citizens 260.00 cc cleaning
Groton Vet Clinic 38.50 dog exam
Hanlon Brothers 2,062.50 doze dump
HD Supply 410.50 fittings
Heartland Consumer Power 1,200.00 loan closing
Heartland Consumer Power 1,537.34 breaker loan
Heartland Consumer Power 53,295.20 power
Heartland Waste Management 4,679.40 garbage hauling
Highsmith 23.58 book covers
HRS Foodservice 57.61 food
James Valley Telecomm 761.96 telephone
Johnson Brothers 6,165.98 liquor
Johnson, Drew 875.00 legal services
Ken's Food Fair 582.70 gas, supplies
Krueger Brothers 17,441.15 gravel
Larry's Tools 250.26 saw
Liberty Flags 357.36 bulbs, repairs
Lori's Pharmacy 73.40 batteries, supplies
McGannon Plumbing 560.76 repairs
Menards 23.38 tarp, mop
Mettler Sichmeller Engineering 330.00 engineering
NECOG 1,345.66 dues
NW Energy 441.84 nat gas
Office Max 108.69 supplies
Omni-site.net 28.00 warning sys
One Call 10.00 locates
Paints N More 652.37 bus-dispatch, phone
Patterson Repair 16.00 sharpening
Pepsi 160.44 pop
Pharis, Stephanie 300.00 hwh sales incentive
Pioneer Ford 625.34 repairs, install radio
Porter Distributing 2,885.20 beer
Quality Quick Print 76.00 post cards
Racom Corp 42.40 comp signal
Ray O'Herron 1,859.47 taser, cartridges
RDO - Farm Plan 456.08 blades
Republic Beverage 3,812.44 liquor
S&S Lumber 41.31 supplies
S&S Lumber 51.99 cord
SD DENR 1,500.00 annual fee
SD Dept of Health 304.00 testing
SD Retirement 4,440.23 retirement
SD State Treasurer 7,125.71 sales tax
Share Corp 880.60 ice melt, enzymes, sweep comp
Sperry, Travis 1,030.00 hwh, dual fuel sales incentive
Steffes 990.00 repair
Thomas Bus Sales 296.30 radio
Trail Chev 600.01 motor, align, headlamp
United Clinic 20.00 physical
United Lease & Finance 12,644.74 loader loan
US Post Office 175.00 box rent
US Postal Service 227.55 envelopes
Walmart 54.94 food, clips, camera, plates
WEB Water 7,549.14 water
Wells Fargo Brokerage 29,523.37 transformer loan
Wells Fargo Brokerage 8,208.97 99 c&g loan
Wells Fargo Brokerage 14,385.43 07 c&g loan
Western Area Power Admin 18,034.92 power
Western Printing 446.40 tickets
Wheeting, Larry 510.00 hwh sales incentive
Wesco 1,017.80 materials
Public Works Supt. McKiver gave department reports.
The 2008 street resurfacing was discussed. The 2008 curb & gutter project will
interfere with the streets scheduled for resurfacing. The Fourth St project of
digging out the base and adding fabric between 5th Ave to 9th Ave will be moved
up to 2008 to replace the street resurfacing and curb and gutter will be added
in that area on a motion by Heitmann and seconded by Hamilton. All members
present voted aye.
At 7:15pm the time for the hearing on the 2007 Special Assessment roll no one
appeared. Moved by Nyberg and seconded by Anderson to accept the 2007 Special
Assessment Roll as presented. All members present voted aye.
The new Flood Zone map requires a new Flood Ordinance. The sample ordinance was
presented for study.
Discussion was held on a request from Farmers Union to pay a service call from
Locke Electric for a city problem. Current policy does not allow such payment.
The request was denied.
Moved by Hendrickson and seconded by Anderson to pass the following resolution
for the SRF bond to pay for the sewer repair project. All members present voted
aye.
RESOLUTION NO. 2008-0107
A RESOLUTION GIVING APPROVAL TO THE ACQUISITION, CONSTRUCTION AND FINANCING TO
PHASE II OF GROTON'S WASTEWATER IMPROVEMENTS PROJECT, GIVING APPROVAL TO THE
ISSUANCE OF A BORROWER BOND TO FINANCE A PORTION OF THE COSTS OF SUCH PROJECT
AND AUTHORIZING THE SALE OF SAID BOND.
NOW, THEREFORE, BE IT RESOLVED AND ORDAINED by the City Council of the City of
Groton as follows:
1. Recitals. The City of Groton (the "City ") desires to make a capital
improvement to and finance Phase II of its Wastewater Improvements Project, as
described in Exhibit A hereto (the "Project"), details on the project are on
file with the Finance Officer and open to public inspection.
2. Authority. The City is authorized to issue a Borrower Bond to finance the
capital improvements pursuant to Section 10-52-2.10 of the South Dakota Codified
Laws. Pursuant to Chapter 10-52 of the South Dakota Codified Laws (the "Act")
the City proposes to issue a municipal non-ad valorem borrower bond (as herein
authorized, the Bond, or the "Borrower Bond") to finance the Project. The City
is authorized by the Sales Tax Act to levy a "non-ad valorem tax" (as defined by
the Act) on the sale, use, storage, and consumption of items taxed under
Chapters 10-45 and 10-46 of the South Dakota Laws, subject to certain, as
amended, exceptions.
3. Sales Tax Ordinance. The City Council has adopted Ordinance No. 598, which
constitutes the City's effective Sales Tax Ordinance (the "Sales Tax
Ordinance"). The Sales Tax Ordinance has been duly adopted pursuant to the Act
and effectively and validly imposes the sales and use tax Act within the City,
such tax being hereinafter referred to as the "Sales Tax".
4. Cost of the Project. The cost of the Project is approximately $150,000. The
City proposes to finance approximately $150,000 of the Project through the
issuance of the Borrower Bond (the "Bond"). The Bond shall be payable out of
collections of the Sales Tax as is necessary to pay principal, premium and
interest on the Bond (the "Pledged Tax").
5. Findings. The City Council hereby finds and determines as follows:
5.1. The Project constitutes capital improvements which qualify for the
financing under and pursuant to SDCL Chapter 10-52, and the Sales Tax Ordinance;
and
5.2. The Borrower Bond authorized hereby is being issued to pay costs of the
Project which have not been incurred or paid as of the date hereof and/or which
the City has heretofore declared its intention to finance with bond proceeds and
for which the City has no other available means or source of financing.
5.3. It is in the best interests of the City to authorize the borrowing of funds
to pay a portion of the costs of the Project by authorizing and issuing its
Borrower Bond, consistent with the terms approved hereby for an aggregate sum
not in excess of the amount of $150,000.
6. Sale of Bond. It is hereby determined to be necessary and in the best
interests of the City and its inhabitants that this City Council authorize,
issue and sell the Bond in order to finance a portion of the cost of the
Project. The Mayor and Finance Officer are authorized to take such action as is
necessary to close the loan with the South Dakota Conservancy District (the
"District") upon such terms and conditions as the District may require. The
Mayor and Finance Officer are authorized to execute the Borrower Bond and Loan
Agreement approved by the District.
7. No Election Required. The Bond may be issued by the City without an election
pursuant to SDCL 10-52-2.10.
8. Approval of the Loan, the Form of Borrower Bond and Loan Agreement. The City
does hereby approve the Loan from the District, the form of the Borrower Bond
and Loan Agreement. The Form of the Borrower Bond and Loan Agreement which are
subject to modification are on file with the Finance Officer and open to public
inspection. The Mayor and Finance Officer are authorized to execute a Borrower
Bond and Loan Agreement in a form approved by the District.
9. Terms of Bond.
9.1. Date, Amount, Maturities and Interest Rates. The City Council hereby
authorizes the issuance of the Bond. The Bond shall be dated in 2008. The
principal amount of the Bond shall not exceed any statutory or constitutional
debt limitation. The Bond shall have maturities and interest rates as negotiated
by the Mayor and Finance Officer.
9.2. Registration. The City hereby appoints The First National Bank in Sioux
Falls as registrar and transfer agent (the "Registrar") for the Bond. The effect
of registration and the rights and duties of the City and the Registrar with
respect thereto shall be as follows:
9.2.1.1. Register. The Registrar shall keep at its office a register (the
"Register") in which the Registrar shall provide for the registration of
ownership of the Bond and the registration of transfers and exchanges of the
Bond entitled to be registered, transferred or exchanged.
9.2.1.2. Transfer of Bond. When a Bond is surrendered for transfer it shall be
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 thereof. If the Bond is properly surrendered as provided above, the
Registrar shall authenticate and deliver, in the name of the designated
transferee, a new Bond of a like aggregate principal amount and maturity. The
Registrar may, however, close the books for registration of any transfer after
the fifteenth day of the month preceding each interest payment date and until
such interest payment date.
9.2.1.3. Exchange of Bond. Whenever a Bond is surrendered by the registered
owner for exchange the Registrar shall authenticate and deliver the new Bond of
a like aggregate principal amount and maturity, as required by the registered
owner or the owner's attorney in writing.
9.2.1.4. Cancellation. All Bonds surrendered upon any transfer or exchange shall
be promptly canceled by the Registrar and thereafter disposed of as directed by
the City.
9.2.1.5. Improper or Unauthorized Transfer. When any Bond is presented the
Registrar may refuse to transfer the same until satisfied that the endorsement
on such Bond or separate 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 transfer which, in their
judgment, are deemed improper or unauthorized.
9.2.1.6. Persons Deemed Owners. The City, Finance Officer, Paying Agent and
Registrar may treat the person whose name any Bond is at any time registered in
the Register 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 such Bond and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's 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.
9.2.1.7. Taxes, Fees and Charges. For every transfer or exchange of Bond, the
Registrar may impose a charge upon the owner thereof sufficient to reimburse the
Registrar for any tax, fee or other governmental charge required to be paid with
respect to such transfer or exchange.
9.2.1.8. Mutilated, Lost, Stolen or Destroyed Bond. In case any Bond shall
become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a
new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such mutilated Bond or in lieu of
and in substitution for any such Bond destroyed, stolen or lost, upon the
payment of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing
with the Registrar of evidence satisfactory that such 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
the Registrar, in which the City and the Registrar shall be named as obligees.
Any Bond so surrendered to the Registrar shall be canceled by him and evidence
of such cancellation shall be given to the City. If the mutilated, destroyed,
stolen or lost certificate has already matured or has been called for redemption
in accordance with its terms it shall not be necessary to issue a new Bond prior
to payment.
9.3. Preparation and Delivery. The Bond shall be prepared under the direction of
the Finance Officer and shall be executed on behalf of the City by the facsimile
or manual signatures of the Mayor and the Finance Officer and countersigned by
the facsimile or manual signature of an attorney actually residing in the State
of South Dakota and duly licensed to practice therein.
9.4. Security Provisions; Funds and Accounts and Other Covenants and
Determinations.
9.4.1. Clean Water Borrower Bond Fund 2008. The Finance Officer is hereby
authorized and directed to establish and shall maintain the Clean Water Borrower
Bond Fund 2008 as a separate and special fund in the financial records of the
City until all Bonds issued and made payable therefrom, and interest due
thereon, have been duly paid or discharged. All collections of the Pledged Tax,
as hereinafter defined, shall be credited, as received, to the Clean Water
Borrower Bond Fund 2008. Within the Clean Water Borrower Bond Fund 2008 are
various separate accounts to be maintained by the City.
9.4.2. Pledged Tax. Pursuant to the Act and the Sales Tax Ordinance, the City
has levied the Sales Tax on the sale, use, storage and consumption of items
taxes under Section 10-45 and 10-46 of South Dakota Codified Laws, subject to
certain exceptions. The proceeds of the Pledged Tax are irrevocably pledged and
appropriated and shall be deposited to the Clean Water Borrower Bond Fund 2008.
For purposes of this Resolution, "Outstanding Bond" shall mean the Bond and any
parity lien Bond hereafter issued pursuant to this Resolution. The Pledged Tax
and the Clean Water Borrower Bond Fund 2008 shall be used and applied only in
the manner and order hereinafter set forth.
9.4.3. Construction Account. There is hereby created and established as an
account of the Clean Water Borrower Bond Fund 2008, a "Construction Account".
There shall be credited to the Construction Account the proceeds from the sale
of the Bond remaining after payment of the expenses of issuing the Bond. All
moneys credited to the Construction Account shall be applied solely to the
payment of the costs of the Project. For the purposes of this Resolution, "costs
of the Project" shall include costs of acquiring, construction, and installing
the Project including cost of labor, services, materials and supplies,
financial, architectural, engineering, legal, accounting and other professional
expenses relating to the Project, the costs of acquisition or properties,
rights, easements, or other interest in properties, insurance premiums, and the
costs of publishing, posting or mailing notices in connection with the Project.
All sums derived from the investment of moneys in the Construction Account shall
remain in and become part of such account. Upon completion of the Project and
when all costs of the Project have been paid, any balance remaining in the
Construction Account shall be credited to the Principal and Interest Account
hereinafter established.
9.4.4. Principal and Interest Account. There is hereby created and established
as an account of the Clean Water Borrower Bond Fund 2008, a "Principal and
Interest Account." Immediately upon delivery of the Bond, there shall be
credited to the Principal and Interest Account the amount of any accrued
interest received from the Purchaser. Commencing on the first day of the month
following the month in which the Bond is delivered to the Purchaser, there shall
be withdrawn from the Clean Water Borrower Bond Fund 2008 at least monthly and
credited to the Principal and Interest Account, an amount which will equal at
least the principal and administrative surcharge becoming due on the next
succeeding principal payment date with respect to the Outstanding Bond. In all
events there shall be credited to the Principal and Interest Account amounts
sufficient to pay the principal of, interest and Administrative Surcharge on the
Outstanding Bond as the same become due.
9.4.5. Subordinate Lien Bond. After making the above-required payments, any
remaining Pledged Tax shall be used for the payment of the principal of and
interest on any additional sales tax revenue bonds having a lien which is on a
parity to or subordinate to the lien of the Outstanding Bond, and for a reserve
fund as additional security for the payment of such subordinate lien Bond.
9.4.6. Inter-fund Transfer. So long as the revenues from the Pledged Tax are
sufficient to make all required deposits to the Principal and Interest Account,
the City may deposit the excess revenues from the Pledged Tax to the general
fund or any other City fund as determined by the City and as permitted by law.
9.4.7. Deposit and Investment of Funds. The Finance Officer shall cause all
moneys pertaining to the Fund to be deposited as received with one or more banks
which are duly qualified public depositories under the provisions of Chapter
4-6A, South Dakota Codified Laws, in a deposit account or accounts, which shall
be maintained separate and apart from all other accounts of the City, so long as
the Bond and the interest thereon shall remain unpaid. Any of such moneys not
necessary for immediate use may be deposited with such depository banks in
savings or time deposits. No moneys shall at any time be withdrawn from such
deposit accounts except for the purposes of the Fund as authorized in this
Resolution; except that moneys from time to time on hand in the Fund may at any
time, in the discretion of this Council, be invested in securities permitted by
the provisions of Section 4-5-6, South Dakota Codified Laws, maturing and
bearing interest at the times and in the amounts estimated to be required to
provide cash when needed for the purposes of the respective accounts. Income
received from the deposit or investment of moneys shall be credited to the
account from whose moneys the deposit was made or the investment was purchased,
and handled and accounted for in the same manner as other moneys in that
account.
9.5. Additional Debt. The Borrower shall not incur any Debt which has a lien on
or right to payment from the Pledged Tax which is superior to that of this Loan
Agreement and the Borrower Bond. The Borrower may incur Debt which is on a
parity with this Loan Agreement and the Borrower Bond under the following
conditions:
9.5.1. Debt secured by Pledged Tax may be incurred to pay or prepay or defease
other Debt secured by Pledged Tax if the maximum annual Debt Service of the new
Debt is no greater than that of the Debt being paid, prepaid or defeased.
9.5.2. Debt secured by Pledged Tax may be incurred for any purpose so long as
prior to the issuance of such Debt the Borrower has delivered to the Trustee and
the District a certificate prepared by a Consultant showing that the Pledged Tax
collected for any 12 consecutive months out of the 15 consecutive months
immediately preceding the issuance of the proposed Debt was at least equal to
120% of maximum annual Debt Service for all Debt secured by Pledged Tax which
will be outstanding immediately after the issuance of the proposed Debt.
9.5.3. The Borrower may not, without the written consent of the District, incur
any (i) variable rate Debt secured by Pledged Tax or (ii) Debt secured by
Pledged Tax the payments of principal of and interest on which in any fiscal
year are 150% or more of the payments of principal and interest for any other
fiscal year.
9.5.4. Nothing herein shall prevent the City from issuing Bonds payable from the
Pledged Tax and the Clean Water Borrower Bond Fund 2008 or having a lien thereon
which is junior and subordinate to the lien of the Bonds authorized herein.
9.6. Covenants of the City. The City hereby irrevocably covenants and agrees
with each and every holder of the Bonds that so long as any of the Bonds remain
outstanding:
9.6.1. It will not amend or repeal the Sales Tax Ordinance relating to the Sales
Tax by decreasing the Sales Tax rate or the allocation of revenues thereof to
the Clean Water Borrower Bond Fund 2008, or in any way that would adversely
affect the amount of Sales Tax revenues which would otherwise be collected and
deposited to the Clean Water Borrower Bond Fund 2008. However, nothing shall
prevent the City from amending the Sales Tax Ordinance in order to make certain
changes in the administration, collection or enforcement of the Sales Tax,
provided that such changes would not materially adversely affect the owners of
the Bonds.
9.6.2. It will administer, enforce, and collect, or cause to be administered,
enforced or collected; the Sales Tax authorized by the Sales Tax Ordinance and
shall take such necessary action to collect delinquent payments in accordance
with law.
9.6.3. It will keep or cause to be kept such books and records showing the
proceeds of the Sales Tax, in which complete entries shall be made in accordance
with standard principles of accounting, and any owner of any Bond shall have the
right at all reasonable times to inspect the records and accounts relating to
the collection and receipts of such Sales Tax.
9.6.4. In the event the Sales Tax of the City is replaced and superseded by the
state collected-locally shared sales tax or taxes, or is replaced and superseded
in some other manner form other source or sources, the revenues derived by the
City from the replacement source or sources, as received by the City shall be
appropriated in the same manner as if the City had levied and imposed a sales
tax. From and after the date of a replacement, the Outstanding Bonds shall have
a first and prior lien, but not necessarily an exclusive lien, upon such
replacement revenues to the extent therein specified.
9.7. Defeasance. When the Bond issued has been discharged as provided in this
section, all pledges, covenants, and other rights granted by this resolution to
the registered owners of the Bond shall cease. The City may discharge its
obligations with respect to any Bond which is due on any date by providing to
the Paying Agent on or before that date a sum sufficient for the payment thereof
in full; or, if the any Bond should not be paid when due, it may nevertheless be
discharged by providing to the Paying Agent a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit. The City may
also discharge its liability with reference to all Bonds which are called for
redemption on any date in accordance with their terms by depositing funds with
the Paying Agent on or before that date in accordance with their terms by
depositing funds with the Paying Agent on or before that date, in an amount
equal to the principal, interest, and premium, if any, which are then due
thereon, provided that notice of such redemption has been duly given. The City
may also at any time discharge this issue of Bonds in its entirety, subject to
the provisions of law now or hereafter authorizing and regulating such action,
by depositing irrevocably in escrow, with a bank qualified by law as an escrow
agent for this purpose, cash or United States government obligations which are
authorized by law to be so deposited, bearing interest payable at such times and
at such rates and maturing on such dates as shall be required to provide funds
(without an reinvestment) sufficient to pay all principal, interest and
premiums, if any, to become due on all Bonds on and before maturity, or, if a
Bond has been duly called for redemption, on or before the designated redemption
date.
9.8. Tax Matters; Certification of Proceedings and Miscellaneous.
9.8.1. Tax Matters. The City covenants and agrees with the registered owners
from time to time of the 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 Bond to become subject to taxation under the Internal Revenue
Code of 1986, as amended (the "Code"), and applicable Treasury Regulations (the
"Regulations"), and covenants to take any and all actions within its powers to
ensure that the interest on the Bond will not become subject to taxation under
the Code and the Regulations. The City will cause to be filed with the Finance
Officer of Treasury an information reporting statement in the form and at the
time prescribed by the Code.
9.8.2. The Mayor and Finance Officer, being the officers of the City charged
with the responsibility for issuing the Bond pursuant to this resolution, are
authorized and directed to execute and deliver to the purchaser thereof a
certificate in accordance with the provisions of Section 148 of the Code and
Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts
estimates and circumstances in existence on the date of issue and delivery of
the Bond which make it reasonable to expect that the proceeds of the Bond will
not be used in a manner that would cause the Bond to be arbitrage bonds within
the meaning of the Code and Regulations.
9.8.3. The City recognizes its obligation to comply with the provisions of
Section 148(f) of the Code relating to the rebate of certain amounts to the
United States, and covenants that it will take or refrain from any actions, the
result of which would be to cause the interest on the Bond to become subject to
federal income taxation as a result of the failure to comply with Section 148(f)
of the Code and applicable Treasury Regulations. The City will take all actions
necessary to comply with the rebate requirement, including making or causing to
be made the computations of rebate or penalty amounts. The City will make any
payments of rebate or penalty amounts, and will pay the costs of computing any
such rebate or penalty amounts.
9.8.4. It is hereby determined that the Bond is not and will not be "private
activity bonds" as defined in Section 141(a) of the Code, and in support of such
conclusion the City Council covenants, represents, and certifies as follows:
9.8.4.1. none of the proceeds of the Bond will be used, directly or indirectly,
or will be used to replace funds which were used, in any trade or business
carried on by any person other than a state or local governmental unit;
9.8.4.2. no direct or indirect payments of the principal of or interest on the
Bond will be derived from payments (whether or not to the City ), in respect of
property, or borrowed money, used or to be used for a private business use by
any person other than a state or local governmental unit;
9.8.4.3. none of the proceeds of the Bond are to be used directly or indirectly,
to make or finance loans to persons other than a state or local governmental
unit; and
9.8.4.4. no user of any facilities or improvements financed with the proceeds of
the Bond will use the same on any basis other than the same basis as the general
public; and no person other than the City will be a user of said, facilities as
a result of (i) ownership; (ii) actual or beneficial use pursuant to a lease or
a management or incentive payment contract; or (iii) any other arrangement.
9.8.5. The City reasonably anticipates that the amount of tax exempt obligations
which will be issued by the City and all entities subordinate to, or treated as
one issuer with, the City during calendar year 2008 will not exceed $5,000,000.
The Bond is hereby designated as "qualified tax-exempt obligations" within the
meaning of Section 265(b)(3) of the Code. The City does not reasonably expect
that it or any subordinate entity will issue, and will not request any other
governmental entity to issue on its behalf, in calendar year 2008, more than
$5,000,000 of obligations which it or any such entity could designate as
"qualified tax-exempt obligations".
9.8.6. If the City agrees to comply with all provisions of the Code, which if
not complied with by the City, would cause the interest on the Bond not to be
tax-exempt in the hands of a holder who is a natural person, including, if
determined to be necessary upon advice of bond counsel, the payment of any
rebate amount necessity to preserve such tax exemption pursuant to Section 148
of the Code. The City further agrees: (1) through its officers, to make such
further specific covenants, representations as shall be truthful, and assurances
as may be necessary or advisable; (2) to consult with bond counsel and to comply
with such advice as may be given; (3) to file such forms, statements, and
supporting documents as may be required and to do so in a timely manner; and (4)
if deemed necessary or advisable by its officers, to employ and pay fiscal
agents, financial advisors, attorneys, and other persons to assist the City in
such compliance.
9.9. Certification of Proceedings. The officers of the City are authorized and
directed to prepare and furnish to the purchaser of the Bond certified copies of
all proceedings and records of the City relating to the authorization and
issuance of the Bond and such other affidavits and certificates as may
reasonably be required to show the facts relating to the legality and
marketability of the Bond as such facts appear from the officer's books and
records or are otherwise known to them. All such certified copies, certificates
and affidavits, including any heretofore furnished, shall constitute
representations of the City as to the correctness of the facts recited therein
and the action stated therein to have been taken.
EXHIBIT A: DESCRIPTION OF THE PROJECT
City of Groton Wastewater Improvement Project Phase II as outlined in facilities
plan dated October 2007.
At 7:30pm Tim Thurston and Police Chief Stacy Mayou came before the Council for
the malt beverage license hearing for Thirsty's at 32 N Main St in Groton. Chief
Mayou spoke against the license due to pending charges and ongoing
investigations against Mr. Thurston which made him an unsuitable candidate for a
malt beverage license. Mr. Thurston stated that these charges would all be
cleared up and the business would not be affected. Moved by Hamilton and
seconded by Heitmann to grant the license. Members voting aye were: Hamilton,
Heitmann, and Anderson. Members voting nay were: Hendrickson and Nyberg. Motion
carried.
No one was able to attend the Legislative Day in Pierre.
Moved by Nyberg and seconded by Hendrickson to recognize the following employees
and volunteers and thank them for their service to the City. All members present
voted aye. The following persons are volunteers: Rescue Squad members: Dale
Ringgenberg, Alfred Tastad, Mel Eikamp, Nancy Larsen, Brad Waage, Patti Woods,
Tom Tietz, Dion Bahr, Tyler Kampa, Ginger Sperry, Travis McGannon, Danielle
Taylor, and Stephanie Stearns. HRC Commission members: Jim Lane, Jean Schaller,
Deanna Hendrickson, Brett Anderson, and Russ Claussen. Baseball helpers: Jerry
Locke, Brenda Waage, Meri Erickson, Brenda Madson, Matt Locke, Steve Giedt,
Scott Thorson, Lars Hanson, Mike Weber, many concession stand workers, Kiwanis
and Legion members. Transit bus drivers: Orville Schaller, Benny Schaller,
Darlene Daly, Jim Ackman, June Ackman, Sherri Koehler, Kristie Gibbs, Bev
Sombke, Janet Kolker, Leo Kersting, Gary Heitmann, Jerome Osness, Jim Gerdes,
Kara Anderson, Jon Voss, Iver Finnesand, Sr., Roy Olson, Rose Waage, Gene
Brolin, Sharon Zoellner, Steve Mogan, Bill Duncan, John Lowary, Anita Lowary,
David Anderson, and Becky Luecke. Transit Board Members: Robert Johnson,
President; Alfred Tastad Vice President; Sherri Koehler, Secretary; Arlis
Doeden, Treasurer & Manager; Directors: Richard Kolker, Steve Smith, and Gary
Heitmann. The following city employees and their positions were also recognized:
Anita Lowary, Finance Officer; Peggy Locke, Deputy Finance Officer; Elaine
Wolken, Asst. Finance Officer; Stacy Mayou, Police Chief; Jerry Bjerke, Asst.
Police Chief; Justin Cleveland, Police Officer; Tony Sorensen, Police Officer;
Allen McKiver, Public Works Coordinator & Street & Wastewater Supt; Terry
Herron, Water Supt; Paul Kosel, Acting Electric Supt.; Dwight Zerr, Public Works
Laborer Level 2; Branden Abeln, Public Works Laborer Level 1; Elmer Nash, Rubble
Site Monitor; Craig Grams, Meter Reader; Chuck Padfield, Meter Reader; Marc
Johnson, Building Inspector; Virginia Nehls, Skating Supt; Ed Nehls, Parks Supt;
Christi Swenson, Youth Center Director; Lee Swenson, Lynette Furman, Jeff
Krueger, Andrew Davies, Nathan Larson, Amanda Swenson, Marquelle Albrecht, Bryan
Becker, Alice Severson, Jade Albrecht, Gabrielle Lund, Nolan Severson, Jared
Carr, Jessica Osterman, Jordon Holler, Nickollette Larson, and Megan Knecht,
Youth Center Counter Attendants; and Planning and Zoning members: Paul Kosel,
Gordon Nelson, Les Hinds, Steve Lewis, and Scott Smith.
Moved by Nyberg and seconded by Anderson to repay the temporary year end loans
between funds as follows: From Health Ins $2,660; From Cancer Ins $500; From Fed
Gas Tax $100; From C&G Cap Imp $210; To General $210; To Retirement $3160; To
Sales Tax $1001; To Debt Service $131,500; To Deposit Trust $41,000; To Airport
$15,000; To BBB Sales Tax $7,500; To Solid Waste $10,000; To Youth Center
$8,000. All members present voted aye.
Moved by Heitmann and seconded by Hamilton to authorize Mayor Olson to sign the
joint powers agreement for 2008 with Northeast Council of Governments. All
members present voted aye.
At 7:39pm the Council adjourned into executive session to discuss personnel and
legal matters on a motion by Nyberg and seconded by Hendrickson. All members
present voted aye. Council reconvened into regular session at 7:58pm.
Moved by Hamilton and seconded by Anderson to authorize Paul Kosel to attend the
MMUA metering school in Marshall, MN on Feb 19-21. All members present voted
aye.
Moved by Anderson and seconded by Nyberg to authorize all public works personnel
the safety school in Aberdeen in Jan. 22-25. All members present voted aye.
Moved by Nyberg and seconded by Hendrickson to hire Harlan Radke, Jr. as a
part-time police officer at $12.15 per hour to replace Tony Sorensen. All
members present voted aye.
Meeting adjourned.
____________________________ ______________________________
Roy L. Olson, Mayor Anita Lowary, Finance Officer
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