09/05/2017 Regular Meeting
FRIEND CITY COUNCIL
REGULAR MEETING
SEPTEMBER 5, 2017
Mayor Vossler called the regular meeting of the City Council to order at 7:00 p.m. at the City Hall. Advanced notice of the meeting was given by publication in The Sentinel, the appointed method for giving advanced notice. All proceedings shown were taken while the meeting was open to the attendance of the public.
Mayor James Vossler presided and City Clerk Debbie Gilmer recorded the proceedings. The following Councilmembers were present: Phyllis Ryan, Shane Stutzman, Stan Krause, and Harlan Schrock. A quorum being present and the meeting duly convened, the following proceedings were had and done.
As required by the Nebraska Open Meetings Act, Mayor Vossler announced that a copy of the Nebraska Open Meetings Act has been posted on the south door of the City Hall meeting room for all in attendance to review.
Motion was made by Krause, seconded by Ryan, to open the public hearing to receive comments relating to the property tax request for 2017-2018, and to receive comments relating to the proposed 2017-2018 budget. On roll call voting aye, Stutzman, Schrock, Ryan, Krause. Nays none. Motion carried. Public hearing opened at 7:02 p.m.
Mayor Vossler announced that public comments would be received at this time. No comments were offered.
Discussion was had and consideration was given to proposals submitted for the city’s insurance. One proposal came from Ball Insurance Services of Eagle, Nebraska through Friend Insurance Center Inc. and Vyhnalek Insurance Agency from Wilber. The second proposal came from the City’s current insurance carrier, Inspro Insurance.
After lengthy discussion, motion was made by Schrock, seconded by Stutzman to accept proposal for the City’s insurance coverage from Inspro Insurance with an annual premium of $39,602. On roll call voting aye, Schrock. Nays, Krause, Ryan, Stutzman. Motion failed.
Motion was then made by Krause, seconded by Ryan to accept the proposal submitted by Ball Insurance Services for the City’s insurance coverage with an annual premium of $40,658. On roll call voting aye, Stutzman, Ryan, Krause. Nays, Schrock. Motion carried.
Jim Ryan was in attendance to inform the Mayor and Council that Marvin and Associates will be meeting to present their final report on the NIFA Housing and Manor Reuse Study that they have been working on over the past year. Mr. Ryan invited the Mayor and Council to attend and participate in this meeting that is tentatively scheduled to be held September 20th in the Friend Community Healthcare Systems dining room.
Motioned by Schrock, seconded by Krause, to approve the minutes of the August 1, 2017 regular meeting and the August 2017 Treasurer’s Report as presented and file same. On roll call voting aye to approve the August 1, 2017 regular meeting minutes and the August 2017 Treasurer’s Report , Stutzman, Ryan, Krause, Schrock. Nays none. Motion carried.
Motion was made by Stutzman, seconded by Ryan, to approve the Friend Community Healthcare System’s financial statements submitted for the month of July 2017. On roll call voting aye, Schrock, Krause, Ryan, Stutzman. Nays none. Motion carried.
A motion was made by Schrock, seconded by Krause, that payroll and claims be approved by the claims committee, and be allowed, and the Clerk instructed to issue warrants on the respective funds to pay same. On roll call voting aye, Ryan, Stutzman, Krause, Schrock. Nays none. Motion carried.
The claims approved were as follows: August Payroll, 28,723.49; Ameritas, 3401.51; EFTPS, 10,119.09; Acco, su 296.00; Baker & Taylor, su 97.81; Bartels Body Shop, se 272.03; Beaver Hardware, su 309.29; Black Hills Energy, fe 119.69 & 50.39; Brothers, su 167.75; Center Point Print, su 44.34; Central States, su 20,350.41; Keith Clouse, fe 250.00; Danko, su 534.64; Demco, su 344.42; Diode, se 46.45; Eakes, su 196.87; EMS, se 192.89; Exeter Lumber, su 32.58; Farmers Coop, se & su 2135.65; Field & Stream, su 6.00; Patrick Gates, re 75.01; Paul & Gail Gropp, fe 150.00; Johnsons, su 113.51; Kirkham Michael, se 440.00; Kriz-Davis, se & su 76.68; LONM, fe 818.00; Menards, su 682.85 & 1745.10; Metro Chemical, su 20,621.94; Midwest Labs, su 191.03; NE Dept of Rev, SWH 1366.20 & ST 8837.34 & fe 25.00; NE Public Health, se 410.00; NE Public Power, se 78,536.07; Nick’s, su 192.15; Norris Power, se 5445.44; NSA, fe 250.00; Diane Odoski, re 117.33; Orkin, se 51.00; Kevin Paulsen, se 30.00; Platte Vly Comm, fe 163.50; POAN, fe 30.00; Principal Mutual, fe 114.83; Reeves, su 54.54; SCAT, fe 1444.00; Saline Cnty Register of Deeds, fe 10.00; Seward County Independent, fe 142.80; Shell Fleet Plus, su 245.68; Sid Dillon, se 228.02; Marvin Slepicka, fe 1000.00 & 4820.00; SENDD, fe 1575.00; Scholl, se 185.88; Verizon Wireless, se 476.97; Vyhnalek Ins, fe 293.00; Waste Connections, se 298.24; Windstream, se 1036.75; Young’s, se 128.44; Zeilinger Keno, fe 225.17. Total Claims Approved $200,338.77.
Motion was made by Stutzman, seconded by Schrock, to close the public hearing to receive comments relating to the property tax request for 2017-2018, and to receive comments relating to the proposed 2017-2018 budget. On roll call voting aye, Krause, Ryan, Schrock, Stutzman. Nays none. Motion carried. Public hearing closed at 7:45 p.m.
Proposed Ordinance #17-746 was read by Mayor Vossler. Councilman Krause moved that the statutory rule requiring reading on three different days be suspended. Councilman Ryan seconded the motion to suspend the rules and upon roll call, voting on the motion was as follows: Members voting aye, Schrock, Stutzman, Ryan, Krause. Members voting nay, none. The motion to suspend the rules was adopted by at least three-fourths of the Council and the statutory rule was declared suspended for consideration of the ordinance.
ORDINANCE NO. 17-746
AN ORDINANCE TO ADOPT THE BUDGET STATEMENT TO BE TERMED THE ANNUAL APPROPRIATION
BE IT ORDAINED BY THE MAYOR
Section 1.
That after complying with all procedures required by law, the budget presented and set forth in the budget statement is hereby approved as the Annual Appropriation Bill for the fiscal year beginning October 1, 2017 through September 30, 2018. All sums of money contained in the budget statement are hereby appropriated for the necessary expenses and liabilities of the City of
Section 2.
This ordinance shall take effect and be in full force from and after its passage, approval, and publication or posting as required by law.
Councilman Stutzman moved for final passage of Ordinance Number 17-746, which motion was seconded by Councilman Krause. On roll call voting aye, Ryan, Schrock, Krause, Stutzman. Voting nay, none. The passage and adoption of said ordinance, having been concurred and by a majority of all Members of the City Council, Ordinance Number 17-746 was adopted this 5th day of September, 2017.
Resolution #17-02 was introduced and read by Mayor Vossler.
RESOLUTION NO. 17-02
WHEREAS, Nebraska Revised Statute 77-1601.02 provides that the property tax request for the prior year shall be the property tax request for the current year for purposes of the levy set by the County Board of Equalization unless the Governing Body of the City of Friend passes by a majority vote a resolution or ordinance setting the tax request at a different amount; and
WHEREAS, a special public hearing was held as required by law to hear and consider comments concerning the property tax request; and
WHEREAS, it is in the best interests of the City of
1. The 2017-2018 property tax request be set at $412,516.31.
2. A copy of this resolution be certified and forwarded to the County Clerk on or before October 13, 2017.
Proposed Ordinance No. 17-747 was read by title by Mayor Vossler relating to authorizing a tax anticipation note to provide financing for certain operating expenses of Warren Memorial Hospital (Friend Community Healthcare Systems).
Councilman Schrock moved that the statutory rule requiring reading on three different days be suspended. Councilman Stutzman seconded the motion to suspend the rules and upon roll call, voting on the motion was as follows: Members voting aye, Ryan, Krause, Stutzman, Schrock. Members voting nay, none. The motion to suspend the rules was adopted by at least three-fourths of the Council and the statutory rule was declared suspended for consideration of Ordinance #17-747.
ORDINANCE NO. 17-747
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF A TAX ANTICIPATION NOTE OF THE CITY OF FRIEND, NEBRASKA IN THE MAXIMUM PRINCIPAL AMOUNT OF $360,633.18 TO PROVIDE FINANCING FOR CERTAIN OPERATING EXPENSES OF WARREN MEMORIAL HOSPITAL (FRIEND COMMUNITY HEALTHCARE SYSTEMS); PRESCRIBING THE FORM AND DETAILS OF THE NOTE; COVENANTING TO PAY SUCH NOTE FROM THE REVENUES OF WARREN MEMORIAL HOSPITAL (FRIEND COMMUNITY HEALTHCARE SYSTEMS) AND, IF NECESSARY, TO LEVY TAXES IN AMOUNTS SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE NOTE; PROVIDING FOR THE PUBLICATION OF THIS ORDINANCE IN PAMPHLET FORM AND RELATED MATTERS
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF FRIEND, NEBRASKA:
Section 1. The Mayor and Council (the “Council”) of the City of
(a) The City is duly organized and validly existing as a city of the second class and political subdivision of the State of
(b) It is necessary, desirable, and advisable and in the best interests of the City that the City provide an operating line of credit to pay expenses incurred at
(c) The City is authorized pursuant to Section 18-1750, Reissue Revised Statutes of Nebraska, as amended (“Section 18-1750”), to borrow money to the amount of 70% of the unexpended balance of total anticipated receipts (as determined pursuant to Section 18-1750) for the current fiscal year and the following fiscal year.
(d) The City anticipates receipts for the current fiscal year and the following fiscal year of $515,190.26 from the levying of taxes for the current fiscal year and the following fiscal year, determined pursuant to Section 18-1750.
(e) Based upon the most recent report of the City’s Treasurer, the unexpended balance of total anticipated general fund receipts is $515,190.26.
(f) As of the Closing Date, there is a principal balance of $319,333.98 plus accrued and unpaid interest thereon outstanding in note or warrant indebtedness under the previous promissory note issued by the City in the maximum principal amount of $319,333.98 dated September 14, 2015, held by Citizens State Bank (“Previous Note”).
(g) It is necessary, desirable, and advisable and in the best interest of the City to borrow money and issue its negotiable revolving line of credit promissory note as provided under Section 18-1750, in an aggregate principal amount of $360,633.18.
Section 2. (a) For the purpose of paying the costs of certain operational expenses of the Hospital issuing the note herein authorized, there is hereby ordered issued a promissory note to the City in the principal amount of Three Hundred Sixty Thousand Six Hundred Thirty Three Dollars and Eighteen Cents ($360,633.18), designated as “Promissory Note, Series 2015” (the “Note”). The Note shall be fully registered as to both principal and interest on the books of the Note Registrar and Paying Agent designated in Section 3 of this Ordinance (the “Registrar”), bear a Date of Original Issue of the date of execution and delivery thereof, be numbered R‑1, be in any denomination, shall mature on the second anniversary of the Date of Original Issue and bear interest, calculated on the basis of a 365/366-day year and actual days elapsed. The Note shall be in the amount advanced by the Purchaser (hereinafter defined) upon request from the City from time to time up to a maximum principal amount of $360,633.18, bear interest computed daily on the principal amount from time to time outstanding and unpaid at a rate equal to the Purchaser’s base rate for such date minus 1.25%. Interest on the Note is payable on the first anniversary of the Date of Original Issue and at maturity. The outstanding unpaid principal on Note R-1 shall be due and payable at maturity.
Payments of interest due on the Note shall be made by the Registrar by mailing a check or draft on each payment date in the amount due for such interest to the Purchaser at its registered address as shown on the books of registration as required to be maintained in Section 3 hereof. Payments of principal due at maturity shall be made by the Registrar to the Purchaser upon presentation and surrender of the Note to the Registrar in lawful money of the
Section 3. (a) The Treasurer of the City is hereby designated the Registrar for the Note. The Registrar shall specify its acceptance of the duties, obligations and trusts imposed upon it by the provisions of this Ordinance by a written instrument deposited with the City prior to the issuance of the Note. The City reserves the right to remove the Registrar upon 30-days notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash in its possession to the successor Registrar and shall deliver the Bond register to the successor Registrar. The Registrar shall have only such duties and obligations as are expressly specified by this Ordinance and no other duties or obligations shall be implied to the Registrar.
(b) The Registrar shall keep and maintain for the City books for the registration and transfer of the Note at its office in Friend,
(c) The Registrar shall also be responsible for making the payments of principal and interest as the same fall due upon the Note from funds transferred to it by the City for such purpose. Payment of interest due upon the Note prior to maturity shall be made by the Registrar by mailing a check in the amount due for such interest on each interest payment date to the Purchaser addressed to Purchaser at its registered address as shown on the books of registration as required to be maintained under this Section 3. Payments of principal due at maturity, together with any accrued interest then due, shall be made by the Registrar upon presentation and surrender of such Note at the office of the Registrar. The City and the Registrar may treat the registered owner of any Note as the absolute owner of such Note for the purpose of making payment thereon and for all other purposes. All payments on account of interest or principal made to the registered owner of any Note shall be valid and effectual and shall be a discharge of the City and the Registrar in respect of the liability upon such Note or claims for interest to the extent of the sum or sums so paid.
Section 4. The Note is subject to prepayment at any time at the option of the City. Any prepayment shall be applied and mutually agreed between the City and the Purchaser.
Section 5. The Note shall be in substantially in the format attached as Exhibit A to this ordinance.
Section 6. The Note shall be executed on behalf of the City by the manual signatures of the Mayor and Clerk. In case any officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note (including any Note delivered to the Registrar for issuance upon transfer), such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer or officers had remained in office until the delivery of such Note.
Section 7. Upon execution and registration of the Note, and upon delivery of the Previous Note to the Registrar, the Registrar is authorized to (a) deliver the Note to Citizens State Bank, a Nebraska banking corporation, Friend, Nebraska, the purchaser thereof (the “Purchaser”), and (b) pay the Purchaser the amount of accrued and unpaid interest on the Previous Note as of the date the same is surrendered and delivered to the Registrar. The current principal balance of the Previous Note ($319,333.98) shall be deemed paid by the issuance of the Note which, immediately upon issuance, shall have a beginning principal balance of $360,633.18. The Purchaser shall have the right to direct the registration of the Note and the denomination thereof, subject to the restrictions of this Ordinance.
Section 8. The Clerk is directed to make and certify transcripts of the proceedings of the City precedent to the issuance of the Note, one of which transcripts shall be delivered to the purchaser of the Note.
Section 9. City represents, warrants, agrees and covenants with and for the benefit of the registered owner of the Note as follows:
(a) It has duly adopted an operating budget for the current fiscal year with respect to the general fund within the time required by law and levy ad valorem taxes on all of the taxable property within the City as required by law.
(b) The receipts from the levy of taxes together with other sources for the current fiscal year and the following fiscal year legally available for the payment of the principal of and interest on the Note will be sufficient to pay such principal and interest in full when and as the same become due.
(c) It will have on deposit in the Warren Memorial Hospital Fund and the general fund of the City amounts sufficient to pay the principal of and interest on the Note in full when and as the same become due.
(d) It will pay the principal of and interest on the Note from the net revenues of
(e) In preparing, approving and adopting a budget which controls or provides for the expenditure of its funds, the City will appropriate, allot and approve, in the manner required by law, from the Warren Memorial Hospital Fund and the general fund of the City amounts sufficient to pay the principal of and interest on the Note in full when and as the same become due.
Section 10. There is hereby established with the Registrar a Note Fund (the “Note Fund”) to be used solely for the purpose of paying the principal of and interest on the Note. Beginning January 1 of each year, the City shall deposit into the Note Fund such proceeds from the net revenues of Warren Memorial Hospital (Friend Community Healthcare Systems) and the levy of taxes authorized pursuant to Section 9 of this Ordinance as shall be sufficient to pay the principal of and interest on the Note when and as the same shall become due.
Section 11. Without in any way limiting the power, authority, or discretion elsewhere herein granted or delegated, the Council hereby authorizes and directs the Mayor and all other officers, employees, and agents of the City to carry out, or cause to be carried out, and to perform such obligations of the City and such other actions as they, or any one of them shall consider necessary, advisable, desirable, or appropriate in connection with this Ordinance, and the issuance, sale, and delivery of the Note, including, without limitation and whenever appropriate, the execution and delivery thereof and of all other related documents, instruments, certifications, and opinions; and delegates, authorizes, and directs the Mayor the right, power, and authority to exercise his own independent judgment and absolute discretion in determining and finalizing the terms, provisions, form and contents of each of the foregoing. The execution and delivery by the Mayor or by any such other officer, officers, agent or agents of the City of any such documents, instruments, certifications, and opinions, or the doing by them of any act in connection with any of the matters which are the subject of this Ordinance, shall constitute conclusive evidence of both the City’s and their approval of all changes, modifications, amendments, revisions, and alterations made therein, and shall conclusively establish their absolute, unconditional, and irrevocable authority with respect thereto from the City and the authorization, approval, and ratification by the City of the documents, instruments, certifications, and opinions so executed and the action so taken.
Section 12. If any one or more of the provisions of this Ordinance should be determined by a court of competent jurisdiction to be contrary to law, then such provisions shall be deemed severable from the remaining provisions of this Ordinance and the invalidity thereof shall in no way affect the validity of the other provisions of this Ordinance or of the Note and the owner of the Note shall retain all the rights and benefits accorded to it under this Ordinance and under any applicable provisions of law.
If any provisions of this Ordinance shall be held or deemed to be or shall, in fact, be inoperative or unenforceable or invalid in any particular case in any jurisdiction or jurisdictions, or in all cases because it conflicts with any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable or invalid in any other case or circumstances, or of rendering any other provision or provisions herein contained inoperative or unenforceable or invalid to any extent whatever.
Section 13. This Ordinance shall be in full force and effect and after its passage, approval and publication in pamphlet form as provided by law.
Councilman Stutzman moved for final passage of Ordinance #17-747, which motion was seconded by Councilman Ryan. On roll call voting aye, Schrock, Krause, Ryan, Stutzman. Voting nay, none. The passage and adoption of said ordinance, having been concurred and by a majority of all Members of the City Council, Ordinance #17-747 was amended and adopted this 5th day of September, 2017.
Resolution #17-03 was introduced and read by Mayor Vossler.
RESOLUTION #17-03
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF FRIEND, SALINE COUNTY, NEBRASKA, APPROVING THE APPLICATION OF THE FRIEND AMERICAN LEGION FORD BANKA POST #183, FOR A SPECIAL DESIGNATED PERMIT UNDER THE NEBRASKA LIQUOR CONTROL ACT, TO SELL LIQUOR, BEER AND WINE AT AN EVENT TO BE HELD ON NOVEMBER 11, 2017 IN THE CITY OF FRIEND. THE SAID SPECIAL DESIGNATED PERMIT TO BE LIMITED TO THE INSIDE AREA OF THE LEGION HALL LOCATED AT 136 MAPLE STREET TO BE HELD BETWEEN THE HOURS OF 5:00 P.M. AND 1:00 A.M., PURSUANT TO THE MUNICIPAL CODE OF THE CITY OF FRIEND, AND THE NEBRASKA LIQUOR CONTROL ACT.
Motion was made by Krause, seconded by Stutzman to approve Resolution #17-03 approving the application of the Friend American Legion Ford Banka Post #183 for a Special Designated Permit for their November 11, 2017 event. On roll call voting aye, Ryan, Schrock, Stutzman, Krause. Nays none. Resolution #17-03 was passed and approved this 5th day of September 2017.
Patrick Gates, Utilities Superintendent, gave his report. Mr. Gates reported that he has been dealing with a sewer main line that has collapsed on State Street. Mr. Gates requested Council’s approval to allow a septic system at this location if all attempts to remedy the problem are unsuccessful. Council approved allowing a septic system at this location if it is determined that it is not feasible to reconnect to the City sewer, or if it is determined to be too costly. Mr. Gates also reported that he has been in contact with McGuire Iron regarding cleaning the water tower. The cost for cleaning and inspection would be $8200. After brief discussion, Council approved that Patrick contact McGuire Iron to proceed with cleaning and inspection of water tower. Relating to the erroneous water reading/billing issue with Cordova, Patrick reported that the village of Cordova has requested Friend calculate what they owe using average readings from previous bills as they are unable to determine actual records of water that they have billed their customers during the time that they were billed incorrectly.
An incentive for a new business considering coming to Friend was discussed. A 3-year agreement (36 months) to utilize city-meter electric rate was proposed. After discussion, Patrick Gates was directed to draft/compose an agreement, and motion was made by Schrock, seconded by Krause, to allow this potential business to be offered the city meter rate for electricity for a period of 3 years as an incentive to bring their business to Friend. On roll call voting aye, Ryan, Stutzman, Krause, Schrock. Nays none. Motion carried.
Mark McFarland, Police Chief, gave his report.
Stan Krause reported on behalf of the Friend Volunteer Fire Department. Krause requested Mayor and Council consider approving an increase in the number of members allowed on the Department. Council had no objections and requested a resolution be placed on the October council meeting agenda to consideration and approve this change.
Todd Zeilinger with Zeilinger Keno, Inc. attended the meeting to request council consider transferring their Keno contract from Zeilinger Keno to CBLAKE LLC. As no objections were given, motion was made by Krause, seconded by Ryan, to approve the assumption/transfer of Friend’s Keno contract from Zeilinger Keno, Inc. to CBLAKE LLC. On roll call voting aye, Schrock, Stutzman, Ryan, Krause. Nays none. Motion carried.
A request for consideration of fiscal year 2017-2018 membership dues was submitted by SENDD (Southeast Nebraska Development District). After discussion, motion was made by Schrock, seconded by Stutzman for continued participation and approved payment of membership dues for the Southeast Nebraska Development District for fiscal year 2017-2018. On roll call voting aye, Krause, Ryan, Stutzman. Schrock. Nays none. Motion carried.
Motion to enter into executive session at 8:42 p.m. for discussion of employee salary increases was made by Schrock, seconded by Stutzman. On roll call voting aye, Ryan, Krause, Stutzman, Schrock. Nays none. Motion carried.
Motion to reconvene regular session of the Friend City Council meeting was made by Krause, seconded by Schrock. On roll call voting aye, Stutzman, Ryan, Schrock, Krause. Nays none. Regular session resumed at 9:05 p.m.
Motion was made by Schrock, seconded by Ryan, to table agenda item “Employee Salary Increases” until the October meeting and to schedule a working session relating to salaries and certain employee benefits. On roll call voting aye, Krause, Stutzman, Ryan, Schrock. Nays none. Motion carried.
No further business to come before the City Council, motion was made by Schrock, seconded by Stutzman, to adjourn the meeting. On roll call voting aye, Ryan, Krause, Stutzman, Schrock. Nays, none. Motion carried. Meeting adjourned at 9:10 p.m.