10/03/2017 Regular Meeting
FRIEND CITY COUNCIL
MINUTES-REGULAR MEETING
OCTOBER 3, 2017
Mayor Vossler called the regular meeting of the City Council to order at 7:05 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: Stan Krause, Harlan Schrock, Shane Stutzman and Phyllis Ryan. 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.
Mayor Vossler announced that public comments would be received at this time. Jake Clouse from Friend Insurance was in attendance to present the City’s new insurance policy.
Motioned by Stutzman, seconded by Krause, to approve the minutes of the September 5, 2017 regular meeting, and the September 2017 Treasurer’s Report as presented and file same. On roll call voting aye to approve the September 5, 2017 regular meeting minutes, and the September 2017 Treasurer’s Report, Ryan, Schrock, Krause, Stutzman. Nays none. Motion carried.
Motion was made by Stutzman, seconded by Schrock to approve the Friend Community Healthcare Systems Financial Statements for August 2017. On roll call voting aye, Krause, Ryan, Schrock, Stutzman. Nays none. Motion carried.
A motion was made by Schrock, seconded by Ryan, 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, Stutzman, Krause, Ryan, Schrock. Nays none. Motion carried.
The claims approved were as follows: September Payroll, 26,674.60; Ameritas, 3534.29; EFTPS, 9344.82; Axon, su 93.09; Baker & Taylor, su 33.39; Beaver Hardware, su 880.58; Black Hills Energy, fe 171.47; C Blake LLC, fe 1000.00; BCBS, fe 4839.40; Brothers, su 15.10; Center Point, su 44.34; Central States, se & su 22,960.69; Keith Clouse, fe 250.00; CRA 3640.38 & 1360.03; Crete Lumber, su 90.57; Culligan, se & su 123.75; Diode Comm, fe 46.45; Dollar General, su 8.25; Eakes, su 29.14; EMP, su 95.16; EMS, se 270.66; Exeter Lumber, su 18.80; Farmer’s Coop, se/su 1733.54; First Wireless, su 703.00; Gale, su 89.96; Galls, su 325.51; Patrick Gates, re 43.17; Paul & Gail Gropp, fe 150.00; Havlat Computers, se 704.94; Johnsons, su 50.93; Kriz-Davis, eq 6538.92; Menards, su 761.75 & 110.64; Metro Chem, su 11,410.23; Chris Michl, se 453.60; Midwest Labs, se 382.06; NE Dept of Charitable Gaming, fe 268.65; NE Dept of Rev, SWH 1262.12, ST 8236.41; NE Public Health, se 267.00; NE Public Power, se 75,126.13; Nick’s, su 136.83; Norris Public Power, se 5,445.44; Diane Odoski, re 68.57; One Call, se 5.31; Orkin, se 51.00; Postmaster, fe 252.86; Principal Mutual, fe 114.83; Romans, Wiemer, fe 1275.00; Saline County Aging Svcs, fe 2496.00; Seward Independent, fe 109.46; Shell, su 307.23; Marvin Slepicka, fe 1000.00; SENDD, fe 1575.00; Stryker Sales, su 1081.81; Verizon, se 472.21; Vyhnalek Ins, fe 40,658.00; Waste Conn., se 298.24; White Elect, su 123.20; Windstream, se 1001.01; Young’s, se 372.79. Total Claims Approved $240,988.31.
Mayor Vossler presented and read by title proposed Resolution #17-04 regarding property located at 308 Maple Street. Owner, Mary Jo Weber, was in attendance to report that she has plans to have the house demolished by the end of November. After discussion, motion was made by Schrock, seconded by Ryan, to table this agenda item, Resolution #17-04 regarding property located at 308 Maple Street, until the December meeting. On roll call voting aye, Stutzman, Ryan, Krause, Schrock. Nays none. Motion carried.
Mayor Vossler presented and read by title proposed Resolution #17-05.
RESOLUTION # 17-05
APPLICATION TO BECOME DEPOSITORIES
To the Honorable Mayor and City Council, Friend, Nebraska;
Come now the following financial institutions and herewith respectfully petition and make application to serve as depositories of monies and funds of the City of Friend, Nebraska, for coming fiscal year beginning October 1, 2017.
- Citizens State Bank (of Friend)
- Farmers and Merchants Bank of Milligan
- Bank of Friend
- Generations Bank of Exeter
BE IT RESOLVED BY THE Mayor and the City Council of the City of Friend, Saline County, Nebraska.
WHEREAS; the aforementioned financial institutions have each filed application for the privilege of becoming a depository for monies and funds of the City of Friend, Nebraska for the fiscal year beginning October 1, 2017, and
WHEREAS; the aforementioned financial institutions have furnished bond for the safekeeping and securing said monies and funds as required by law in addition to the security given to the City of Friend as a depository by the Federal Deposit Insurance Corporation;
NOW THEREFORE BE IT RESOLVED; by the Mayor and City Council of the City of Friend, Saline County, Nebraska, that the Citizens State Bank, the Farmers and Merchants Bank of Milligan, the Bank of Friend, and Generations Bank of Exeter are hereby approved as depositories for monies and funds and in compliance with the terms and provisions of the Section 17-607 of the revised statutes for the year 1943 and all amendments hereto.
Motion was made by Krause, seconded by Stutzman to approve Resolution #17-05. On roll call voting aye, Schrock, Ryan, Stutzman, Krause. Nays none. Resolution #17-05 was passed and approved this 3rd day of October 2017.
Mayor Vossler reported to the Council that he had been approached by Todd Johnson from Citizens State Bank regarding Ordinance #17-747 that was adopted at the September 5th meeting. After discussion, it was agreed upon by the Mayor and Council that the maximum dollar amount of the Tax Anticipation Note should remain the same as the previous Note, $319,333.98. Motion to rescind Ordinance #17-747 was made by Schrock, seconded by Krause. On roll call voting aye to rescind Ordinance #17-747, Stutzman, Ryan, Krause, Schrock. Nays none. Motion carried.
Proposed Ordinance No. 17-748 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 Stutzman 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, Krause, Schrock, Ryan, Stutzman. 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 #17-748.
ORDINANCE NO. 17-748
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 $319,333.98 TO PROVIDE FINANCING FOR CERTAIN OPERATING EXPENSES OF WARREN MEMORIAL HOSPITAL (AKA 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 Nebraska (the “State”) under Chapter 17, Reissue Revised Statutes of Nebraska, as amended.
(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 Warren Memorial Hospital, aka Friend Community Healthcare Systems (the “Hospital”), owned and operated by the City.
(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 $319,333.98.
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 Nineteen Thousand Three Hundred Thirty-Three Dollars and Ninety-Eight Cents ($319,333.98), designated as “Promissory Note, Series 2017” (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 $319,333.98, 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, Nebraska. The names and registered addresses of the registered owner of the Note shall at all times be recorded in such books.
(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 $319,333.98. 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 (Friend Community Healthcare Systems) 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 Warren Memorial Hospital (Friend Community Healthcare Systems). To the extent the same is insufficient for such purposes, it will cause to be levied and collected annually a special levy of taxes upon the taxable value of all the taxable property in the City, in addition to all other taxes, sufficient in rate and amount to pay the principal of and interest on the Note in full when and as the same become due.
(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 (Friend Community Healthcare Systems) 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 Krause moved for final passage of Ordinance #17-748, which motion was seconded by Councilman Schrock. On roll call voting aye, Ryan, Stutzman, Schrock, Krause. 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 #17-748 was adopted this 3rd day of October 2017.
Utilities Superintendent, Patrick Gates gave his report.
Mr. Gates requested Council consider approving a contract for professional engineering services with Kirkham Michael for Street Superintendent, as required by NBCS and to authorize contract be signed by Mayor Vossler upon receipt. Motion was made by Stutzman, seconded by Krause to approve contract between the City of Friend and Kirkham Michael for professional engineering services relative to the completion of all Street Superintendent Services as required by the Nebraska Board of Classifications and Standards and to authorize contract be signed by Mayor Vossler upon receipt. On roll call voting aye, Schrock, Ryan, Krause, Stutzman. Nays none. Motion carried.
Mr. Gates requested Council’s approval of an agreement between Nebraska Public Power District and the City of Friend, relating to the Public Utility Regulatory Policies Act requirements. After discussion, motion was made by Schrock, seconded by Ryan, to approve Agreement between Nebraska Public Power District and City of Friend, relating to the Public Utility Regulatory Policies Act requirements. (Copy of this Agreement is attached.) On roll call voting aye, Krause, Stutzman, Ryan, Schrock. Nays none. Motion carried.
Patrick Gates asked Council to consider approving a contract between the City of Friend and Maguire Iron, Inc. for power washing and inspecting the water tower. Motion was made by Schrock, seconded by Stutzman, to approve the proposed contract by and between the City of Friend and Maguire Iron, Inc., and to authorize Mayor Vossler to sign said contract for power washing and inspection of the water tower for the sum of $8,200. On roll call voting aye, Krause, Ryan, Stutzman, Schrock. Nays none. Motion carried.
Mayor Vossler reported on behalf of Friend Community Healthcare Systems.
Discussion was had regarding a request for approval for a proclamation from the Saline County Drug/Alcohol Prevention Coalition-Community Against Underage Risky Behavior (CURB). The Coalition is working with communities in Saline County to promote the responsible use of alcohol and the opposition to the illegal use of alcohol and other drugs. The following proclamation was read by Mayor Vossler.
2017 Red Ribbon Week
-PROCLAMATION-
WHEREAS, alcohol and drug abuse in this Nation have reached epidemic stages; and
WHEREAS, it is imperative that visible, unified prevention education efforts by community members be launched to eliminate the demand for drugs; and
WHEREAS, the National Red Ribbon Campaign offers citizens the opportunity to demonstrate their commitment to drug-free lifestyles (no use of illegal drugs, no illegal use of legal drugs, no irresponsible use of alcohol); and
WHEREAS, business, government, parents, law enforcement, media, medical institutions, religious institutions, schools, senior citizens, service organizations, and youth will demonstrate their commitment to healthy, drug-free lifestyles by wearing and displaying red ribbons during this week-long campaign; and
WHEREAS, the City of Friend further commits its resources to ensure the success of the Red Ribbon Campaign:
NOW, THEREFORE, BE IT RESOLVED, the City of Friend does hereby proclaim October 23-31, 2017 as RED RIBBON WEEK, and encourages its citizens to participate in drug prevention education activities, not only during Red Ribbon Week, but all year long, making a visible statement that together we are committed to Saline County being drug-free.
To signify their stand against drug abuse and to show support of the 2017 Red Ribbon Week event, motion was made by Schrock, seconded by Ryan to approve Mayor Vossler place his signature on the 2017 Red Ribbon Week Proclamation. On roll call voting aye, Krause, Stutzman, Schrock, Ryan. Nays none. Motion carried.
The Planning Commission submitted their recommendation to the Council for an application they received entitled “Hamilton West Subdivision”. After discussion, motion was made by Stutzman, seconded by Schrock, to table the agenda item of “Planning Commission Recommendation for Hamilton West Subdivision” until the November Friend City Council meeting. On roll call voting aye, Krause, Ryan, Schrock, Stutzman. Nays none. Motion carried.
Motion to enter into executive session at 7:58 p.m. for discussion of personnel and salary/wage increases was made by Stutzman, seconded by Krause. On roll call voting aye, Ryan, Schrock, Krause, Stutzman. Nays none. Motion carried.
Motion to reconvene regular session of the Friend City Council meeting was made by Schrock, seconded by Stutzman. On roll call voting aye, Krause, Ryan, Stutzman, Schrock. Nays none. Motion carried. Regular session resumed at 8:40 p.m.
Motion was made by Schrock to authorize a 1% increase in wages/salaries for Josh Alloway, Billy Baugh, Eldon Eklund, Patrick Gates, Debbie Gilmer, Kim Goossen, Mark McFarland, and Ryan Yoder. Schrock also included in the motion to allow up to 5 years from the date of adoption of this motion for employees to use any accumulated vacation and that from that date forward no more than three days may be carried over to the next year. Motion was seconded by Ryan. 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 Stutzman, seconded by Krause, to adjourn the meeting. On roll call voting aye, Ryan, Schrock, Krause, Stutzman. Nays, none. Motion carried. Meeting adjourned at 8:50 p.m.