11/05/2013 Regular Meeting
FRIEND CITY COUNCIL
MINUTES-REGULAR MEETING
NOVEMBER 5, 2013
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: Dan Drake, Phyllis Ryan, and Stanley Krause. Harlan Schrock was absent. Attorney Mullally was also in attendance. 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. None offered.
Motioned by Drake, seconded by Ryan, to approve the minutes of the October 1, 2013 regular meeting and the October 2013 Treasurer’s Report as presented and file same. On roll call voting aye to approve the October 1, 2013 regular meeting minutes and the October 2013 Treasurer’s Report, Krause, Ryan, Drake. Nays none. Schrock absent. Motion carried.
Motion was made by Krause, seconded by Drake to approve the WMH Financial Statements for August and September 2013. On roll call voting aye, Ryan, Drake, Krause. Nays none. Schrock absent. Motion carried.
Mayor Vossler announced that if there were no objections, Ordinance #13-734 would be reviewed and considered at this time. As there were no objections, proposed Ordinance #13-734 was introduced and read by title by Mayor Vossler. Councilman Drake 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, Ryan, Drake. Members voting nay, none. Schrock 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. 13-734
AN ORDINANCE AMENDING ORDINANCE NO 13-733, EFFECTIVE AS OF OCTOBER 1, 2013, TO AUTHORIZE THE ISSUANCE, SALE, AND DELIVERY OF A TAX ANTICIPATION NOTE OF THE CITY OF FRIEND, NEBRASKA IN THE PRINCIPAL AMOUNT OF $324,808 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 Friend, Nebraska (the “City”) hereby finds and determines:
(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) Pursuant to Ordinance No. 13-733, the City authorized the issuance of its negotiable promissory note in the amount of $84,956.55 (the “Original Note”) for the purpose of provide an operating line of credit to pay operating expenses incurred at Warren Memorial Hospital (the “Hospital”), owned and operated by the City.
(c) The calculations on which principal amount of the Original Note was based included certain expenditures which were properly excluded from such calculations and it is now necessary, desirable, advisable and in the best interests of the City to amend Ordinance No. 13-733, effective as of October 1, 2013, to adjust the amount of the Note therein authorized to the correct principal amount.
Section 2. Section 1 of Ordinance No. 13-733 is hereby amended, effective as of October 1, 2013, to read as follows:
Section 1. The Mayor and Council (the “Council”) of the City of Friend, Nebraska (the “City”) hereby finds and determines:
(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, advisable and in the best interests of the City that the City provide an operating line of credit to pay operating expenses incurred at Warren Memorial Hospital (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 $464,012.16 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 total general fund expenditures from October 1, 2013 to and including the expected date of issuance of the notes herein authorized (the “Closing Date”) is $0.00, leaving an unexpended balance of total anticipated general fund receipts of not less than $464,012.16.
(f) As of the Closing Date, the City will have $0.00 outstanding in notes or warrant indebtedness to be paid from the proceeds of the Notes authorized hereby.
(g) It is necessary, desirable, advisable and in the best interest of the City to borrow money and issue its negotiable promissory note as provided under Section 18-1750, in an aggregate principal amount of $324,808.00.
Section 3. Section 2 of Ordinance No. 13-733 is hereby amended, effective as of October 1, 2013, to read as follows:
Section 2. (a) For the purpose of paying the costs of certain operating expenses of the Hospital issuing the notes herein authorized, there is hereby ordered issued a promissory note of the City \in the principal amount of Three Hundred Twenty-Four Thousand Eight Hundred Eight and no/100 Dollars ($324,808.00), designated as “Promissory Note, Series 2013” (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-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 $324,808.00, 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 United States of America. All payments on account of interest or principal made to the Purchaser in accordance with the terms of this Ordinance shall be valid and effectual and shall be a discharge of the City and the Registrar, in respect of the liability upon the Note or claims for interest to the extent of the sum or sums so paid.
Section 4. Section 5 of Ordinance No. 13-733 is hereby amended, effective as of November 5, 2013, to read as follows:
Section 5. The Note shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF SALINE
CITY OF FRIEND, NEBRASKA
PROMISSORY NOTE, SERIES 2013
No. R-1 $324,808.00
Date of Issue Date of Maturity Rate of Interest
November 6, 2013 September 30, 2015 Citizens State Bank Base
Rate minus 1.25%
REGISTERED OWNER: CITIZENS STATE BANK
PRINCIPAL AMOUNT: THREE HUNDRED TWENTY-FOUR THOUSAND EIGHT HUNDRED EIGHT AND NO/100 DOLLARS
The CITY OF FRIEND, NEBRASKA (the “City”), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner specified above, or registered assigns, the principal sum of Three Hundred Twenty-Four Thousand Eight Hundred Eight Dollars ($324,808.00) or so much thereof as is disbursed and remains outstanding hereunder as shown on the records of the Registered Owner hereof, not to exceed the Principal Amount specified above, in lawful money of the United States of America on the Date of Maturity specified above with interest thereon from the Date of Issue shown above at the interest rate per annum, specified above, payable annually on September 30 of each year, commencing September 30, 2014 and at the Date of Maturity (each of such dates an “Interest Payment Date”). Such interest shall be computed daily on the then outstanding unpaid balance of the Principal Amount at the then current Rate of Interest and on the basis of a 365/366 day year and actual days elapsed. The principal of this Note (the “Note”) is payable upon presentation and surrender of the same at the office of the Treasurer of the City, the registrar and paying agent (the “Registrar”). Interest on this Note will be paid by check or draft mailed on each Interest Payment Date by the Registrar on the Registered Owner of the Note, as shown on the books of record maintained by the Registrar to such owner’s address as shown on such books and records.
This Note evidences a revolving line of credit. Advances under this Note may be made upon written request submitted only by the Registrar; provided, however, the Registered Owner shall have no obligation to advance funds under this Note if the City is in default under the terms of this Note. City agrees to be liable for all sums advanced under this Note and other amounts described on this Note.
The issuance of this Note was authorized by Ordinance No. 13-734 duly passed and adopted by the Mayor and Council on November 5, 2013 (the “Ordinance”) in strict compliance with the provisions of Sections 18-1750, Reissue Revised Statutes of Nebraska, as amended, for the purpose of providing funds to pay certain expenses of Warren Memorial Hospital, owned and operated by the City. Reference is hereby made to the Ordinance, all of the provisions of which any owner of this Note by its acceptance hereof thereby assents, for a description of the nature and extent of the security for the Notes, the covenants of the City and the taxes, funds and revenues pledged to the payment of the principal of and interest on the Note. A certified copy of the Ordinance is on file at the office of the Council.
Prepayment of all or any portion of the principal may be made at any time at the option of the City without premium.
If City shall fail to pay any sums hereunder when due, or if an Event of Default shall occur as defined below, then, and in any or all such events, the entire then outstanding unpaid balance of the Principal Amount, together with all accrued and unpaid interest thereon and any other sums due and payable hereunder, shall, at the option of the Registered Owner, become immediately due and payable without further notice or demand. The failure of the Registered Owner to exercise its option to accelerate or any of the rights to which the Registered Owner may be entitled shall not constitute a waiver of the right to exercise such option or any other right in the event of an subsequent default whether of the same or different nature. For purposes of this Note, an Event of Default shall include the following:
- If the City shall fail to pay when due any amount payable under this Note or shall fail to comply with any of the other terms of this Note, time being of the essence; or
- If the City shall file or there shall be filed against the City, a petition in bankruptcy or insolvency or a petition or answer seeking any reorganization, arrangement, readjustment, liquidation, dissolution or similar relief under the Bankruptcy Code of the United States or under any other applicable federal, state or other statute or law, or if a receiver, trustee or liquidator shall have been appointed with respect to the City, or all or any substantial part of the City’s property.
In the event it becomes necessary for the Registered Owner to employ legal counsel or to take legal action to collect any sums due hereunder, to enforce any provisions hereof or to protect any of the Registered Owner’s rights hereunder, the City agrees to pay to the Registered Owner, to the extent permitted by law, in addition to taxable costs of any legal proceedings or actions, reasonable attorney fees actually incurred, and all costs or preparation and conduct of such proceedings, all of which shall be and become a part of the amount due hereunder.
This Note is to be construed according to the laws of the State of Nebraska. Remedies of Registered Owner as provided in this Note shall be cumulative and concurrent and may be pursued singly, successively, or together against the City at the sole discretion of the Registered Owner, and any such remedies shall not be exhausted by any exercise thereof but may be exercised as often as the occasion therefore shall occur. Registered Owner shall not by any acts of admission or commission be deemed to have waived any rights or remedies hereunder unless such waiver is in writing and signed by the Registered Owner, and then only to the extent specifically set forth therein; a waiver on one event shall not be construed as continuing or as a bar to or waiver of such right or remedy on a subsequent event.
The Note is issuable as a fully registered Note as provided in the Ordinance. This Note is transferable by the Registered Owner or such owner’s attorney duly authorized in writing at the office of the Registrar in Friend, Nebraska upon surrender and cancellation of this Note, and thereupon a new Note of the same aggregate principal amount, interest rate and maturity will be issued to the transferee as provided in the Ordinance, subject to the limitations therein prescribed. The City, the Registrar and any other person may treat the person in whose name this Note is registered as the absolute owner hereof for the purpose of receiving payment due hereunder and for all purposes and shall not be affected by any notice to the contrary, whether this Note be overdue or not.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this Note did exist, did happen and were done and performed in regular and due form and time as required by law and that the indebtedness of the City, including this Note, does not exceed any limitation imposed by law. The City agrees that it shall pay the principal of and interest on this Note from the net revenues of Warren Memorial Hospital and to cause to be levied and collected annually a special levy of taxes on all the taxable property in the City to pay the principal of and interest on the Notes as the same become due to the extent such net revenues are insufficient.
IN WITNESS WHEREOF, the Mayor and Council have caused this Note to be executed on behalf of the City by the manual signatures of its Mayor and Clerk, all as of the Date of Issue shown above.
CITY OF FRIEND, NEBRASKA
ATTEST:
By: _______________________________
Mayor
By:____________________________________
Clerk
Following the reading of the title of the Ordinance, Councilmember Krause moved the Ordinance for final passage in substantially the form attached hereto as Exhibit C with such changes and modifications as shall be determined by the Mayor to be in the best interest of the City, which motion was seconded by Councilmember Drake. On roll call voting, the following Councilmembers voted in favor of the passage of the Ordinance: Ryan, Drake, Krause; the following Councilmembers voted against the passage of the Ordinance: none; the following Councilmember was absent or did not vote: Schrock. The passage of the Ordinance having been agreed upon by a majority of the Council, the Mayor declared the Ordinance passed and, in the presence of the Council, signed and approved the Ordinance. The Clerk attested to its passage by signing the same and affixing the seal of the City to the Ordinance. A true and compete copy of the Ordinance is attached hereto as Exhibit C.
A motion was made by Krause, 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, Drake, Ryan, Krause. Nays none. Schrock absent. Motion carried.
The claims approved were as follows: October Payroll, 18,821.94; Ameritas, 2362.83; EFTPS, 6320.27; Aflac, fe 52.78; Baker & Taylor, su 364.94; Barco, su 234.65; Beatrice Concrete, su 1557.97; Beaver Hardware, su 158.00; Black Hill Ammo, su 209.50; Black Hills Energy, fe 210.34; Chief Supply, su 78.86; Keith Clouse, fe 250.00; CRA, re 1339.98; Culligan, su 125.00; Lee DeBevoise, se 475.00; Demco, su 110.19; Diode Comm, fe 65.45; EMP, su 56.16; EMS, se 151.41; Eakes, su 19.35; Farmers Coop, su 1856.67; Gale, su 88.46; Gene’s Electric, se & su 12,886.06; Debbie Gilmer, re 104.64; Kim Goossen, re 104.64; HRW, re 7644.95; Holiday Inn, fe 498.00; Johnsons, su 88.55; Jr. Library Guild, su 56.88; Kirkham Michael, se 7410.00; Jackie Larsen, re 30.95; Ronald McConnell, se 180.00; Mark McFarland, re 29.08; Justin Meader, se 568.70; Menards, su 212.10 & 103.75; Midwest Refuse, se 267.96; Michael Mullally, fe 2131.00; NDEQ, fe 150.00; NE Dept of Reg & Licensure, fe 345.00; NMPP, su 630.00; NE Dept of Rev, SWH 779.96; NE Public Health, fe 37.00; NE Public Power, se 62,634.19; NMCA, fe 50.00; NE Title, fe 350.00; One-Call, se 6.30; Overhead Door, se 152.64; Plains Power, se 602.37; Platte Valley Comm, se 40.50; Postmaster, fe 232.50 & 400.00; Principal Mutual, fe 104.92; Sargent Drilling, se 675.00; Seward Independent, fe 123.72; Shell, su 411.00; Sid Dillon, fe 49,058.71; Marvin Slepicka, fe 1000.00; Steve’s Repair, se 401.53; Streichers, su 36.98; Phyllis Svehla, se 84.88; The Depository Trust, fe 511.05; Vander Haags, su 559.00; Verizon, se 575.49; Windstream, se 958.20. Total Claims Approved $188,137.95.
Mayor Vossler shared with the Council correspondence that Attorney Mullally received from the U.S. Attorney’s Office notifying him that the U.S. Attorney’s Office is closing the complaint investigation in view of actions taken by the City of Friend to correct the alleged ADA violations, related to persons with disabilities not being able to participate in the City’s services, programs, and activities at the ballfield because the entrance was not accessible, there was no accessible parking, and the restrooms were not accessible. Attorney Mullally extended his appreciation and commended Patrick Gates for his efforts in correcting these violations.
Mayor Vossler introduced proposed Resolution #13-37.
RESOLUTION #13-37
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF FRIEND, SALINE COUNTY, NEBRASKA, APPROVING THE APPLICATION OF SOC 153, LLC DBA POUR HOUSE, FOR SPECIAL DESIGNATED LICENSE UNDER THE NEBRASKA LIQUOR CONTROL ACT, TO SELL, SERVE AND/OR CONSUME BEER, WINE, AND DISTILLED SPIRITS ON DECEMBER 8, 2013 IN THE CITY OF FRIEND. THE SAID SPECIAL DESIGNATED LICENSE TO BE LIMITED TO THE INSIDE AREA OF THE HISTORIC WARREN BUILDING/SAN CARLO ROOM, 511 SECOND STREET, SUITES B, TO BE HELD BETWEEN THE HOURS OF 1:00 P.M. AND 6:00 P.M. PURSUANT TO THE MUNICIPAL CODE OF THE CITY OF FRIEND, AND THE NEBRASKA LIQUOR CONTROL ACT.
Motion to adopt Resolution #13-37 approving Special Designated Liquor Licenses as applied for by SOC153 dba Pour House for an event to be held December 8th was made by Drake, seconded by Ryan. On roll call voting aye, Krause, Ryan, Drake. Nays none. Schrock absent. Motion carried.
Motion was made by Drake, 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. On roll call voting aye, Ryan, Krause, Drake. Nays none. Schrock absent. Motion carried.
Motion was made by Krause, seconded by Ryan, to authorize Mayor Vossler to execute by signing Maintenance Agreement No. 69 between the Nebraska Department of Roads and the City of Friend relative to surface maintenance of 2.54 lane miles of Highway 6. On roll call voting aye, Drake, Krause, Ryan. Nays none. Schrock absent. Motion carried.
Discussion was had regarding paving assessments for the Page and 5th Street Improvements Project 2012-1 and the method of service notifying owners of a special meeting to determine rate and terms of assessments. Motion was made by Drake, seconded by Ryan to notify property owners by personal service of a special meeting on November 26th at 5:00 p.m. for the purpose of setting the rate and terms of the paving assessments for the Page and 5th Street Improvements Project 2012-1. On roll call voting aye, Krause, Ryan, Drake. Nays none. Schrock absent. Motion carried.
Stan Krause stated that he had nothing to report on behalf of the Friend Volunteer Fire Department. Krause reported for Friend Rescue. Mr. Krause asked if Attorney Mullally would review and give his advisement on a contract between Friend Rescue and Crete Hospital for an ALS intercept vehicle, prior to Friend Rescue considering and entering into such a contract.
Dan Drake reported on behalf of Warren Memorial Hospital. Mr. Drake said that a new administrator has been hired and is scheduled to start next week. Mr. Drake also reported that they have hired a new billing clerk.
Continued discussion was had regarding the sale of city-owned property on Highway 6 and Maple Street. Discussed advertising to request sealed bids for this property and the option for the Council to reserve the right to review/accept/refuse/reject any bids received. Council requested Attorney Mullally proceed by preparing documentation and notices necessary for this.
After discussion and consideration, motion was made by Drake, seconded by Ryan, to approve and support the Friend Historical Society obtain Nebraska state tax credits to assist in fundraising for restoration of the Historical Warren Opera House through the Community Development Assistance Act and approve Friend Historical Society’s application to the CDAA. On roll call voting aye, Krause, Ryan,Drake. Nays none. Schrock absent. Motion carried.
Discussion was had regarding the annual employee appreciation dinner. This year’s dinner will be held Friday, January 10th at the Friend Country Club.
Mayor Vossler reported to the Council that Mike Mullally had submitted a letter of resignation after over 18 years of service as Friend City Attorney to be effective December 31, 2013.
No further business to come before the City Council, motion was made by Drake, seconded by Krause, to adjourn the meeting. On roll call voting aye, Ryan, Krause, Drake. Nays, none. Schrock absent. Motion carried. Meeting adjourned at 7:55 p.m.