10/06/2015 Regular Meeting
FRIEND CITY COUNCIL
MINUTES-REGULAR MEETING
OCTOBER 6, 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: Phyllis Ryan, Shane Stutzman, Harlan Schrock and Stan Krause. 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 Schrock, to approve the minutes of the September 1, 2015 regular meeting, the September 14, 2015 special meeting, and the September 2015 Treasurer’s Report as presented and file same. On roll call voting aye to approve the September 1, 2015 regular meeting minutes, the September 14, 2015 special meeting minutes, and the September 2015 Treasurer’s Report , Ryan, Stutzman, Schrock, Krause. Nays none. Motion carried.
Motion was made by Stutzman, seconded by Ryan to approve the WMH Financial Statements for August 2015. On roll call voting aye, Schrock, Krause, Ryan, Stutzman. Nays none. Motion carried.
A motion was made by Schrock, seconded by Stutzman, 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, Ryan, Stutzman, Schrock. Nays none. Motion carried.
The claims approved were as follows: September Payroll, 23,320.41; Ameritas, 3066.59; EFTPS, 8134.48; Alamar Uniforms, su 129.54; BVH, su 7.34; Baker & Taylor, su 360.35; Bartels Body Shop, se 202.14; Beaver Hardware, su 1328.18; Black Hills Energy, fe 50.34; Blue Blossom, su 50.00; Brothers, su 32.44; Central States, se & su 11,344.32; Keith Clouse, fe 250.00; CRA 9128.78; Crete True Value, se 67.74; Culligan, se & su 67.00; Diode Comm, fe 43.12; Discover, su 3012.96; EMS, fe 346.33; Eakes, su 23.17; Exeter Lumber, su 177.40; Farmer’s Coop, se/su 1069.56; Gale, su 89.96; Galls, su 210.94; Patrick Gates, re 87.27; Gene’s Electric, se & su 17,710.98; Paul & Gail Gropp, fe 150.00; Jr. Library Guild, su 60.48; Menards, su 818.16; Chris Michl, se 428.40; Midwest Labs, se 190.75; NCSPC, fe 783.16; NE Muni Power Pool, fe 584.78; NE Dept of Charitable Gaming, fe 416.00; NE Dept of Rev, SWH 1039.74, ST 7881.78; NLETC, fe 95.00; NE Public Health, se 101.00; NE Public Power, se 80,048.89; Norris Public Power, se 10,729.26; One Call, se 26.00; Postmaster, fe 248.57; Principal Mutual, fe 114.83; Rays Hydraulics, se 1839.04; Romans Wiemer & Assocs, fe 1200.00; Seward Independent, fe 57.00; Shell, su 398.85; Marvin Slepicka, fe 1000.00; Streichers, su 81.00; Taser Int’l, su 985.05; Tim Gill Ins, re 15.87; Troyer Concrete, su 3162.00; Upstart, su 41.15; Verizon, se 426.95; Waste Connections, se 284.04; Windstream, se 835.82; Youngs, se 214.41; Zeilinger Keno, fe 365.86. Total Claims Approved $194,935.18.
Mayor Vossler presented and read by title proposed Resolution #15-10.
RESOLUTION NO. 15-10
A RESOLUTION AUTHORIZING A DIRECT BORROWING FROM A FINANCIAL INSTITUTION IN THE AMOUNT NOT TO EXCEED $500,000 IN THE FORM OF A SINGLE PROMISSORY NOTE FOR THE PURPOSE OF FINANCING THE PURCHASE OF REAL OR PERSONAL PROPETY AND/OR THE REFINANCING OF EXISTING INDEBTEDNESS; APPROVING THE FORM OF SAID PROMISSORY NOTE AND RELATED DOCUMENTS, IF ANY; DIRECTING THE APPLICATION OF THE PROCEEDS OF SAID PROMISSORY NOTE; PROVIDING FOR PAYMENT OF THE SAME; AUTHORIZING THE DELIVERY OF THE PROMISSORY NOTE TO A FINANCIAL INSTITUTION; DETERMINING THAT INTEREST ON SAID PROMISSORY NOTE SHALL NOT BE EXCLUDABLE FROM GROSS INCOME FOR PURPOSES OF FEDERAL INCOME TAXATION; AND MAKING RELATED FINDINGS AND DETERMINATIONS.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF FRIEND, NEBRASKA:
Section 1. The Mayor and City Council of the City of Friend, Nebraska (the “City”) hereby find and determine as follows:
(a) the City owns and operates a municipal hospital (the “Hospital”) under Sections 17-961 to 17-966, R.R.S. Neb., as amended; and
(b) the City has incurred certain indebtedness relating to its Hospital in the approximate principal amount of [$320,000] (the “Existing Indebtedness”), presently represented by a promissory note or other debt obligation to Citizens State Bank, Friend, Nebraska, a Nebraska state-chartered bank (the “Bank”); and
(c) the City has acquired or is in the process of acquiring certain personal property for its hospital consisting of, among other things, an electronic health records system and related systems, equipment and software (the “EHR Project”), for which it is necessary and advisable for the City to borrow funds in the amount of up to [$180,000]; and
(d) financing of the EHR Project and the refinancing of the Existing Indebtedness through traditional bond financing would be impractical and could not be completed within the time restraints facing the City ; and
(e) notice of this meeting, published by posting in at least three public places in the City no later than Thursday, October 1, 2015, included a clear notation that a resolution authorizing direct borrowing from a financial institution will appear on the agenda for this meeting; and
(f) the current municipal budget of the City of $8,791,295.65, and the amount of funds to be borrowed from the Bank under the terms of this resolution does not exceed ten percent (10%) such municipal budget; and
(g) given the City’s current financial conditions, funding needs, and existing banking relationships, it was not possible to consider proposals from multiple financial institutions; and
(h) all conditions, acts and things required by law, including Section 18-201, R.R.S. Neb., as amended, to exist or to be done precedent to the borrowing of funds from the Bank as provided herein execution of such agreement and issuance of such bond do exist and have been done as required by law.
Section 2. For the purposes described in Section 1 hereof, the City shall execute and deliver to the Bank the promissory note substantially the form set forth in Exhibit A to this Resolution (the “Note”), and the loan agreement and or other loan documents, if any, in substantially the form(s) set forth in Exhibit B to this Resolution (the “Loan Agreements”; the Note and Loan Agreements are collectively referred to as the “Loan Documents”) which exhibits are by such references incorporated herein as if fully set forth. The Loan Documents shall provide for a loan from the Bank to the City in accordance with the following terms:
(a) Maximum Principal Amount: $500,000.00.
(b) Maximum Stated Interest Rate Per Annum: 3.75%.
(c) Maturity: Not later than December 6, 2015.
(d) Purpose: Refinance the Existing Indebtedness and pay (or reimburse the City for) costs of the EHR Project.
(e) Date of Loan: October 7, 2015
The Mayor and City Clerk are hereby authorized to execute and deliver the Loan Documents for and on behalf of the City in substantially the forms presented but with such changes from the forms presented and attached hereto as such officers shall deem appropriate for and on behalf of the City.
Section 3. The Loan Documents (including the original Note) shall be delivered to the Bank under the terms of the Loan Agreements on the Date of Loan described in Section 2 above. The City Clerk shall make and certify a transcript of the proceedings of the Mayor and Council with respect to the Loan Documents, which shall be retained with the City’s official Records and a copy of which shall be delivered to the Hospital Administrator. The officers of the City, or any one or more of them, are hereby authorized to take any and all actions deemed necessary or appropriate in connection with the execution, delivery or performance of the Loan Documents.
Section 4. The proceeds of the Note shall be applied to purposes set out in Section 2 above and otherwise in accordance with the terms of the Loan Documents.
Section 5. The City agrees that it will apply available resources to the payment of principal of and interest on the Note and other sums (if any) due under the Loan Documents.
Section 6. The Mayor and Council hereby expressly declare the intent and understanding that interest on the Note shall not be excludable from gross income under the terms of Section 103 of the Internal Revenue Code of 1986, as amended, and the City as issuer shall not file any information report with respect to the issuance of the Note pursuant to Section 149(e) of said Code.
Section 7. This Resolution shall be in force and take effect from and after its passage as provided by law.
Motion was made by Schrock, seconded by Stutzman to approve Resolution #15-10 authorizing direct borrowing (not to exceed $500,000) in the form of a single promissory note for the purpose of replenishing cash spent on Electronic Health Records and/or the refinancing of existing indebtedness for Warren Memorial Hospital. On roll call voting aye, Krause, Stutzman, Schrock. Nays none. Ryan abstained. Motion carried. Motion was then made by Krause, seconded by Stutzman, to authorize Mayor Vossler and City Clerk, Debbie Gilmer, to sign necessary documents relating to borrowing funds (not to exceed $500,000) for the purpose of replenishing cash spent on Electronic Health Records and/or the refinancing of existing indebtedness for Warren Memorial Hospital. On roll call voting aye, Ryan, Schrock, Stutzman, Krause. Nays none. Motion carried.
Utilities Superintendent, Patrick Gates gave his report. Mr. Gates reported that the war memorial at the city park has been completed and asked the Mayor and Council to consider a time for a dedication of the memorial. After discussion, Mr. Gates, Ron Corbett representing the American Legion, Mayor Vossler, and the Friend City Council agreed to have a dedication to be held on Veteran’s Day, November 11th, at 1:00 p.m. at the location of the war memorial.
Mr. Gates requested Council consider approving 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 Schrock, seconded by Ryan 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, Stutzman, Krause, Ryan, Schrock. Nays none. Motion carried.
There was no police report as Chief Mark McFarland was not in attendance.
Building Inspector, Mark Stutzman gave his report. He reported that he had been contacted again by the school for a permit to put a building (approximately 30 ft. x 40 ft.) on their property located at 5th and Pine Street. Mr. Stutzman reported that this application is on hold at this time.
Nothing reported for the fire department.
Nothing reported for the hospital.
Tim McDermott representing the Saline County Drug/Alcohol Prevention Coalition-Community Against Underage Risky Behavior (CURB) attended the meeting. 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. Mr. McDermott spoke about Red Ribbon Week and asked the Council to make a proclamation signifying its stand against drug abuse and to show their support to this cause. The following proclamation was read by Mayor Vossler.
2015 Red Ribbon Week
-PROCLAMATION-
October 23-31, 2015
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, 2015 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 2015 Red Ribbon Week event, Council approved Mayor Vossler to place his signature on this Proclamation.
On behalf of the American Legion, Ron Corbett attended the meeting. Mr. Corbett reported to the Mayor and Council that the Legion was struggling and looking for ways to cut costs. He asked for input and/or options that might be available to the Legion to assist in reducing their utility bills. After lengthy discussion, it was determined that further consideration was needed and that this issue may be addressed at a later time.
Mr. Corbett brought to the attention of the Mayor and Council the need for maintenance of the flag poles located at Highway 6 and Maple Street, and at Andrew Cemetery. He also asked for the City to consider partnering with the American Legion to place/install mounts/brackets on light poles along Maple Street to be used to display an “avenue of flags”. Patrick Gates will check into the costs involved with this and follow-up with Mr. Corbett.
Representing the Community Redevelopment Authority, Jim Ryan attended the meeting. Mr. Ryan requested Council’s approval to proceed with a project they have planned for signage along Highway 6 (see attached information). Motion was made by Stutzman, seconded by Schrock, to approve the CRA proceed with project they have for placing new metal signage along Highway 6. On roll call voting aye, Ryan, Krause, Schrock, Stutzman. Nays none. Motion carried.
The signage project will be funded with money collected from the recently implemented occupation tax imposed on certain businesses along Highway 6. As directed by resolution, projects such as this qualify for the use of this tax, but must be paid for prior to being reimbursed with funds from the collected occupation taxes. Therefore, Mr. Ryan requested Council to approve the Community Redevelopment Authority obtain a $10,000 loan from Citizens State Bank to fund their signage project along Highway 6, which will be reimbursed upon completion by the occupation tax imposed on certain businesses on Highway 6. Motion was made by Schrock, seconded by Ryan, to approve the Community Redevelopment Authority obtain a $10,000 loan from Citizens State Bank to fund their signage project along Highway 6, which will be reimbursed upon completion by the occupation taxes collected from certain businesses on Highway 6. On roll call voting aye, Krause, Stutzman, Ryan, Schrock. Nays none. Motion carried.
Captain of Friend Rescue Service, Ray Rohrig attended the meeting to request Council consider approving an increase in their rates for transfers, as was recommended by EMS Billing Service. Motion was made by Stutzman, seconded by Krause, to approve rate increases for Friend Rescue Service local transfers to $450 plus mileage, and for transfers to Lincoln to $550 plus mileage, as was recommended by EMS Billing Service. On roll call voting aye, Schrock, Ryan, Krause, Stutzman. Nays none. Motion carried.
No further business to come before the City Council, motion was made by Schrock, seconded by Ryan, to adjourn the meeting. On roll call voting aye, Krause, Stutzman, Ryan, Schrock. Nays, none. Motion carried. Meeting adjourned at 8:29 p.m.