09/01/2015 Regular Meeting
FRIEND CITY COUNCIL
MINUTES-REGULAR MEETING
SEPTEMBER 1, 2015
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: Harlan Schrock, Shane Stutzman, and Stanley Krause. Phyllis Ryan was unable to attend. 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. No comments were offered.
Motioned by Krause, seconded by Stutzman, to approve the minutes of the August 4, 2015 regular meeting and the August 2015 Treasurer’s Report as presented and file same. On roll call voting aye to approve the August 4, 2015 regular meeting minutes and the August 2015 Treasurer’s Report , Schrock, Stutzman, Krause. Nays none. Ryan absent. Motion carried.
Motion was made by Schrock, seconded by Krause to approve the WMH Financial Statements for July 2015. On roll call voting aye, Stutzman, Krause, Schrock. Nays none. Ryan absent. Motion carried.
A motion was made by Stutzman, seconded by Schrock, 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, Krause, Schrock, Stutzman. Nays none. Ryan absent. Motion carried.
The claims approved were as follows: August Payroll, 23,034.27; Ameritas, 3021.00; EFTPS, 7986.90; BC/BS, fe 3573.82; BVH, su 244.29; Baker & Taylor, su 259.74; Bartels, se 275.21; Beaver Hardware, su 30.85; Black Hills Ammo, su 1315.00; Black Hills Energy, fe 124.97 & 46.97 & 138.88; Bruning Law, fe 1485.00; Central States, se & su 18,820.30; Chief Su, su 219.76; Keith Clouse, fe 250.00; CRA 19,490.05; Crete Lumber, su 122.01; Culligan, se & su 95.75; D&D, su 567.80; Demco, su 100.64; Diode Comm, fe 50.45; Discover, su 3387.19; Eakes, su 199.26; Ekelers, se 1385.70; EMC, fe 39,674.00; EMP, su 379.35; EMS, se 70.76; Farmer’s Coop, se/su 1771.51; Galls, su 600.45; Patrick Gates, re 71.36 & 36.36; Gene’s Electric, se & su 6157.75; Paul & Gail Gropp, fe 150.00; Johnsons, su 94.09 & 110.02; Jr. Library Guild, su 60.48; LONM, fe 1647.00 & 771.00; Rosemarie Markus, fe 50.00; Menards, su 1362.32 & 272.03 & 142.49; Ann Middgah, se 50.00; NDEQ, fe 300.00; NE Dept of Rev, SWH 1005.19, fe 25.00, ST 10,332.04; NE Public Health, se 30.00; NE Env Prod, su 1679.61 NE Public Power, se 84,172.07; Nicks, su 216.57; Norris Public Power, se 5364.63; NCSPC, 725.02; Office Cash, re 288.04; One-Call, se 40.25; POAN, fe 95.00; Postmaster, fe 248.57; Principal Mutual, fe 134.37; Reeves, su 26.61; Seward Independent, fe 87.00; Shell, su 344.68; Sid Dillon, se 56.83; Marvin Slepicka, fe 1000.00; SENDD, fe 1575.00; Streichers, su 324.77; Tim Gill, re 15.27; Troyers, se 6390.40; Verizon, se 470.31; Waste Connections, se 304.04; Windstream, se 915.44; Zeilinger Keno, fe 1849.80. Total Claims Approved $257,713.29.
Mayor Vossler announced that if there were no objections, Ordinance #15-743 would be reviewed and considered at this time. As there were no objections, proposed Ordinance #15-743 was introduced and read by title by Mayor Vossler. Councilman Krause moved that the statutory rule requiring reading on three different days be suspended. Councilman Schrock seconded the motion to suspend the rules and upon roll call, voting on the motion was as follows: Members voting aye, Stutzman, Schrock, Krause. Members voting nay, none. Ryan absent. 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. 15-743
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 $93,369.28 TO PROVIDE FINANCING FOR CERTAIN OPERATING EXPENSES OF WARREN MEMORIAL HOSPITAL; PRESCRIBING THE FORM AND DETAILS OF THE NOTE; COVENANTING TO PAY SUCH NOTE FROM THE REVENUES OF WARREN MEMORIAL HOSPITAL 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 $485,310 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 $133,384.68.
(f) As of the Closing Date, there is a principal balance of $307,937.76 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 $324,808 dated November 5, 2013, 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 $93,369.28.
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 Ninety Three Thousand Three Hundred Sixty Nine Dollars and Twenty-Eight Cents ($93,369.28), 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 $93,369.28, 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 ($307,937.76) shall be deemed paid by the issuance of the Note which, immediately upon issuance, shall have a beginning principal balance of $307,937.76. 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
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 Schrock moved for final passage of Ordinance Number 15-743, which motion was seconded by Councilman Stutzman. On roll call voting aye, Krause, Stutzman, Schrock. Voting nay, none. Ryan absent. The passage and adoption of said ordinance, having been concurred and by a majority of all Members of the City Council, Ordinance Number 15-743 was adopted this 1st day of September, 2015.
Proposed Resolution #15-08 was introduced and read by Mayor Vossler.
RESOLUTION # 15-08
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, 2015.
- 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, 2015, 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 Stutzman, seconded by Krause to approve Resolution #15-08, approving application of Citizens State Bank, Farmers and Merchants Bank of Milligan, Bank of Friend, and Generations Bank of Exeter to become depositories for monies and funds for the City of Friend. On roll call voting aye, Schrock, Krause, Stutzman. Nays none. Ryan absent. Resolution #15-08 was passed and approved this 1st day of September, 2015.
Utilities Superintendent, Patrick Gates gave his report. Gates shared with the Mayor and Council that the City pond was recently stocked and that many of the fish have died. Patrick reported that he believes this has occurred as a result of the stress from the new fish being added to the pond, and from a lack of oxygen in the water. To increase the oxygen levels Mr. Gates has set up an aerator. Since setting up this aerator there have been no dead fish reported.
Mr. Gates reported that Jr. Eklund and Billy Baugh are attending wastewater operator classes. The war memorial near the new building at the park should be completed later this week or at least next week. Regarding the concession building at the ballfield, Art Drake approached Gates about the possibility of using money from the Johnson trust for pop cooler(s), and in turn consider naming the ballfield in honor of Mr. Johnson. Mr. Gates also suggested to the Mayor and the council that the new building at the park be named in honor of Leona M. Ihde (or the estate of Leona M. Ihde through the Nebraska Community Foundation).
Newly hired full-time police officer, Ryan Musil attended the meeting. At this time the oath of office was administered. Mr. Musil read the oath of office, agreed to its contents, and signed the oath.
Mark McFarland presented to the Mayor and council a proposal for Office Musil’s salary and benefits. After discussion, Chief McFarland was directed to draft an agreement/contract between the City of Friend and Officer Musil. This agreement will be considered at the upcoming special meeting that is scheduled for September 14th.
Motion was made by Schrock, seconded by Krause, to approve annual renewal of membership with the Southeast Nebraska Development District for $1575. On roll call voting aye, Stutzman, Krause, Schrock. Nays, none. Ryan absent. Motion carried.
The annual report for Saline County Aging Services (formerly Saline County Eldercare Coalition) was provided to the Mayor and council for their review and consideration. The amount of funding Saline County Aging Services is requesting for their 2015-2016 fiscal year is $2496. Motion was made by Schrock, seconded by Stutzman, to approve the request from Saline County Aging Services to allocate $2496 for financial support for their fiscal year 2015-2016. On roll call voting aye, Krause, Stutzman, Schrock. Nays none. Ryan absent. Motion carried.
Motion to enter into executive session at 7:55 p.m. for discussion of employee salary increases was made by Schrock, seconded by Stutzman. On roll call voting aye, Krause, Stutzman, Schrock. Nays none. Ryan absent. Motion carried.
Motion to reconvene regular session of the Friend City Council meeting was made by Schrock, seconded by Krause. On roll call voting aye, Stutzman, Krause, Schrock. Nays none. Ryan absent. Regular session resumed at 8:25 p.m.
Motion was made by Schrock, seconded by Stutzman to approve the following wages for city employees to be effective October 1, 2015: Utilities Superintendent $24.72/hr., City Clerk (hourly) $17.50/hr., Bookkeeper (hourly) $14.65/hr., Police Chief $22.35/hr., Street Maintenance (hourly) $16.60/hr. On roll call voting aye, Krause, Stutzman, Schrock. Nays none. Ryan absent. Motion carried.
No further business to come before the City Council, motion was made by Krause, seconded by Schrock, to adjourn the meeting. On roll call voting aye, Stutzman, Schrock, Krause. Nays, none. Motion carried. Meeting adjourned at 8:29 p.m.