Welcome to Groton, South Dakota

Return to Top

August 3, 2010

The Groton City Council met on the above date at 12:45pm at City Hall for a special meeting with the following members present: Brotherton, Heitmann, Opp, Hamilton by telephone, and Mayor Olson presiding.

After discussions with SD Dept of Environment and Natural Resources, the SD preference would not apply to the Sewer Crossing under the Railroad project. They would not approve the awarding to Dahme Construction. Therefore the low bid from Quam Construction for $278,703.50 was accepted on a motion by Opp and seconded by Brotherton. All members present voted aye.

Councilman Hanlon enters the meeting at this point and Councilman Anderson enters by telephone.

Meeting adjourned.

Roy L. Olson, Mayor

Anita Lowary, Finance Officer

Published once at an approximate cost of $7.00

Return to Top

August 2, 2010

The Groton City Council met on the above date at 7pm at City Hall for their regular first monthly meeting with the following members present: Brotherton, Anderson, Heitmann, Opp, Hamilton, Hanlon, and Mayor Olson presiding.

The minutes were approved as read on a motion by Brotherton and seconded by Hamilton. All members present voted aye.

The financial report was approved on a motion by Heitmann and seconded by Hanlon. All members present voted aye.

The following bills were approved for payment on a motion by Anderson and seconded by Opp. All members present voted aye.

Executive Payroll, 481.02, salaries; Administrative Payroll, 6,118.86, salaries; Public Safety Payroll, 9,972.06, salaries; Public Works Payroll, 20,413.69, salaries; Cultural & Recreational Payroll, 23,524.73, salaries; Wells Fargo Bank, 17,593.75, ss & wh; City of Groton, 475.64, postage, lic, dep ref, emp sav; Cons Fed Cred Union, 1,600.00, emp savings; AFLAC, 464.60, emp group ins; Wellmark Ins, 8,435.98, health ins; Aberdeen Hardball Assoc, 200.00, tourn fee; Cooper, ELR, 10.00, notary fee; Hanlon, Scott, 20.00, mileage; Heartland Cons Power Dist, 25,315.78, power; Ken’s, 1,936.59, gas, food, cleaners; Lori’s Pharmacy, 8.36, glue, protectors; Morehouse, Justin, 500.00, dep refund; RDO Farm Plan, 93.33, blades, belts, switch; SD Supp Retirement, 710.00, emp supp retire; Sperry Stump Removal, 500.00, tree removal; United Accounts, 50.00, emp savings; US Post Office, 144.48, postage; Abeln, Mark, 50.00, dep refund; Avera Clinic, 50.00, dep refund; Anderson, Richard, 50.00, dep refund; Bartz, Don, 50.00, dep refund; Brown, Gerald, 50.00, dep refund; Dakota Risk Management, 50.00, dep refund; Ehresmann, Chris, 50.00, dep refund; Finnesand, Iver, 50.00, dep refund; Frohling, Larry, 50.00, dep refund; Gerhard, David, 50.00, dep refund; Hughes, Kieth, 50.00, dep refund; Kroll, Joel, 50.00, dep refund; May, Bruce, 50.00, dep refund; McComsey, Jason, 50.00, dep refund; Olson, Kay, 50.00, dep refund; Paepke, Tom, 50.00, dep refund; Suther, Adam, 50.00, dep refund; Swisher, Mary, 50.00, dep refund; Tewksbury, Randy, 50.00, dep refund; Ulrich, Chris, 50.00, dep refund; Wieseler, Jeremy, 50.00, dep refund; Wagner, Paul, 50.00, dep refund; Wolter, Cora, 50.00, dep refund; WAPA, 25,935.92, power ; Academy Trophy, 30.00, trophy; Bahr, Loren, 100.00, oil chg labor; Boehmer, Rod, 1,020.00, hwh sales incentive; Border States, 642.36, battery, lamps, photocells; Br Co Am Red Cross, 172.00, lesson cards; Chase Visa, 1,040.90, lid, post, gas, ink, pool equip; City of Groton, 85.71, postage; Clark Engineering, 10,276.16, engineering; Colonial Research, 279.06, cleaner; Curt’s Bodyworks, 500.00, signs; CWD, , 318.20, food, trays, tp ; Dahme Constr, 82,750.14, 2nd St sewer const; Dakota Electronics, 35.27, repairs; Dakota Supply Group, 65,747.67, water meter chg out; Dakota Supply Group, 650.17, reducer, gaskets, cplgs; Darrel’s Sinclair, 24.95, tire repair; Diamond Vogel, 396.00, paint; Doubleday LP, 19.69, books; Ellwein Bros, 6,736.00, beer; Farmer’s Union, 1,349.75, dsl, herbicide; Groton Dairy Queen, 114.00, ice cream bars; Groton Independent, 110.97, publishing; Groton Schools, 403.76, filters, oil; Groton Senior Citizens, 150.00, cc cleaning; Hanson, Marc, 510.00, hwh sales incentive; Harry Implement, 151.78, oil, filter; Heartland Cons Power Dist, 1,537.34, breaker loan; Heartland Waste, 5,439.48, garbage hauling; James Valley Telecomm, 786.06, phone serv; Johnson Bros, 7,008.49, liquor; Johnson, Drew, 1,525.00, legal services; Kampa Construction, 4,581.80, sidewalk; K&H Electric, 4,708.32, boring; Klapperich, Skip, 300.00, move bldg; Krueger Bros, 48,575.55, gravel, rock; Lenius Well Drilling, 19,100.00, cap wells; Lord, Randy, 2,021.00, dep refund; McGannon Plumbing, 1,299.14, repairs; McKiver, Al, 25.00, CDL; McNamara, Erin, 15.00, lesson; Merkel, Terry, 725.00, doze dump; MTI Distributing, 48.92, riser; NVC, 180.96, innerduct, cplg; NW Energy, 1,631.03, nat gas; NWPS, 1,931.63, power delivery; Office Equipment, 34.49, ribbon; Olson Backhoe, 2,693.86, digging, packing; One Call Systems, 47.25, locates; Pioneer Ford, 109.44, repairs; Porter Dist Co, 2,008.10, beer; Quill, , 146.65, ink, paper, moisteners; Republic Bev Co, 2,290.79, liquor; S&S Lumber, 1,117.25, supplies; SD Dept of Health, 336.00, testing; SD Dept of Labor, 396.00, unemployment; SD Retirement, 6,271.68, retirement; SD State Treasurer, 8,227.00, sales tax; Serocki Excavating, 7,815.60, asphalt; T&R Electric, 2,480.00, transformers; Topkote, 169,969.64, st resurfacing; Trail Chevrolet, 119.12, connector, pad kit; Ultra Max, 88.50, ammunition; Waage, Brenda, 454.71, Jr Teeners tourn motel ; WEB Water, 9,656.43, water;

Department reports were reviewed. Progress reports were given on the sewer construction projects. The street resurfacing is complete. Water meter change outs are 95% complete. Several grants requests are still pending. Sidewalks at the skating rink were complete. The base for the new merry-go-round at the park was poured.

At 7:05pm Travis Kurth came before the Council to report on the 2010 baseball season. Discussion was held on frost heaving damages to fences, grandstand, and dugouts. Girls softball program was compared to the boys baseball program.

At 7:30pm the following quotations for stump grinding in the park were opened and read aloud:, Arbor Pro - $1,975.00

Lee’s Stump Grinding - $2,052.00

Stumps R Us - $1,944.00

Rodney’s Tree Service - $2,099.00

Sperry’s Stump Removal - $1,190.00

Moved by Opp and seconded by Hamilton to accept the low quotation and hire Sperry’s Stump Removal to do all stumps in the City Park. All members present voted aye.

The Brown County Disaster Mitigation Plan was presented and the following resolution was adopted on a motion by Heitmann and seconded by Opp. All members present voted aye.

RESOLTION NO. 2010-0801

RESOLUTION TO ADOPT THE BROWN COUNTY PDM PLAN

WHEREAS the City of Groton has experienced severe damage from strong winds, flooding, hail, heavy snow, heavy rain, and tornadoes on many occasions in the pst century, resulting in property loss, loss of life, economic hardship, and threats to public health and safety;

WHEREAS a Hazard Mitigation Plan has been developed after more than one year of research and work by the City of Groton, Brown County Emergency Management, NECOG, Northern Electric Cooperative and the Pre-Disaster Mitigation Committee:

WHEREAS the Plan recommends hazard mitigation actions that will protect the people and property affected by the natural hazards that face the City;

WHEREAS a public meeting was held to review the Plan as required by law;

NOW THEREFORE BE IT RESOLVED by the Mayor and Council of Groton that:

1. The Hazard Mitigation Plan is hereby adopted as an official plan of the City of Groton.

2. The respective City official identified in the strategy of the Plan is hereby directed to implement the recommended action assigned to them.

3. The City of Groton will provide annual progress reports on the status of implementation of the plan to the Mayor and City Council. This report shall be submitted to the City Council by November 1st of each year.

A change order for the Water Meter replacement project for the addition of $499.61 to Dakota Supply Group was approved on a motion by Hamilton and seconded by Anderson. All members present voted aye.

Moved by Brotherton and seconded by Hanlon to pass the following resolution authorizing the debt needed to fund the Sewer Crossing the Railroad project. All members present voted aye.

RESOLUTION NO. 2010-0802

RESOLUTION GIVING APPROVAL TO CERTAIN SEWER FACILITIES IMPROVEMENTS; GIVING APPROVAL TO THE ISSUANCE AND SALE OF A REVENUE BOND TO FINANCE, DIRECTLY OR INDIRECTLY, THE IMPROVEMENTS TO THE FACILITIES; APPROVING THE FORM OF THE LOAN AGREEMENT AND THE REVENUE BOND AND PLEDGING NON ADVALOREM TAX REVENUES TO SECURE THE PAYMENT OF THE REVENUE BOND; AND CREATING SPECIAL FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF FUNDS FOR THE RETIREMENT OF THE REVENUE BOND.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Groton as follows:,

Section 1. Definitions.

The terms when used in this Resolution shall have the following meanings set forth in the indicated in this section unless the context clearly requires otherwise. All terms used in this Resolution which are not defined herein shall have the meanings assigned to them in the Loan Agreement unless the context clearly otherwise requires.

?Act? means South Dakota Codified Laws Chapter 10-52.

?District? means the South Dakota Conservancy District.

?Loan? means the Loan made by the South Dakota Conservancy District to the City pursuant to the terms of the Loan Agreement and as evidenced by the Revenue Bond.

Project means the Sanitary Sewer Project under BNSF Railroad.

Revenue Bond means the revenue bond or bonds issued the date of the Loan Agreement by the City to the South Dakota Conservancy District to evidence the Citys obligation to repay the principal of and pay interest and Administrative Expense Surcharge on the Loan.

Sales Tax Ordinance? means Ordinance No. 497 which provides for the collection of non ad valorem sales and use tax in accordance with SDCL 10-45.

Pledged Tax means the effective and validly imposed sales and use tax imposed within the City limits pursuant to the Ordinance and Act.

System means the City?s sewer system.

Section 2. Declaration of Necessity and Findings.

2.1. Declaration of Necessity.

The City hereby determines and declares it is necessary to construct and finance the Project and Issue the Revenue Bond.

2.2. Findings. The City does hereby find as follows:

2.2.1. The City hereby expressly finds that if the Project is not undertaken, the System will pose a health hazard to the City and its inhabitants, and will make the City unable to comply with state and federal law.

2.2.2. Because of the functional interdependence of the various portions of the System, the fact that the System may not lawfully operate unless it complies with State and federal laws, including SDCL Chapter 34A-2, and the federal Clean Water Act, and the nature of the improvements financed..

Section 3. Authorization of Loan, Pledge of Pledged Tax.

3.1. Authorization of Loan. The City hereby determines and declares it necessary to finance up to $322,000.00 of the costs of the Project through the issuance of bonds payable from the Pledged Tax of the City for a term not exceeding ten (10) years. Loan Payments will be in lawful money of the United States and shall be paid to the District. Interest and Administrative Expense Surcharge shall be calculated on the basis of a year of 360 days made up of 12 months of 30 days each. Pursuant to Section 2.10 of the Act no election is required to issue the Revenue Bond.,

3.2. Approval of Loan Agreement. The execution and delivery of the Revenue Obligation Loan Agreement (the ?Loan Agreement?), the form of which is on file with the City Finance Officer (the ?Finance Officer?) and open to public inspection, between the City as City and the District, is hereby in all respects authorized, approved and confirmed, and the Mayor and Finance Officer are hereby authorized and directed to execute and deliver the Loan Agreement in the form and content attached hereto, with such changes as the Attorney for the City deems appropriate and approves, for and on behalf of the City. The Mayor and Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the City set forth in or required by the Loan Agreement. The Loan Agreement, herein referred to and made a part of this Resolution as if stated in full, is on file in the office of the Finance Officer and is available for inspection by any interested party.

3.3. Approval of Revenue Bond. The issuance of a revenue bond in a principal amount not to exceed $322,000.00 as determined according to the Loan Agreement in the form and content set forth in Appendix B attached to the form of Loan Agreement (the ?Revenue Bond?) shall be and the same is, in all respects, hereby authorized, approved, and confirmed and the Mayor, Finance Officer, and other appropriate officials shall be and are hereby authorized and directed to execute and seal the Revenue Bond and deliver the Revenue Bond to the District, for and on behalf of the City, upon receipt of the purchase price, and to use the proceeds thereof in the manner set forth in the Loan Agreement. The Mayor and Finance Officer are hereby authorized to approve the final terms of the Revenue Bond and their execution and delivery thereof shall evidence that approval.

Section 4. Pledge, Collection and Segregation of Pledged Tax.

4.1. Pledge. The City does hereby irrevocably pledges the Pledged Tax to the South Dakota Conservancy District to secure the City?s obligation to pay all amounts payable under this Loan Agreement and the Revenue Bond. The City represents that there are no liens on such revenues except for the parity debt set forth in Appendix F of the Loan Agreement, and that other than the liens granted to secure the indebtedness set forth in Appendix F of the Loan Agreement , it shall not grant or permit to exist any liens on the Pledged Tax, superior to that granted by this Resolution and that such pledge constitutes a first priority perfected security interest in the Pledged Tax.

4.2. Collection and Segregation. Each month in which it receives Pledged Tax the City shall set aside in a separate account from the Pledged Tax received that month an amount equal to the Accrued Interest and Administrative Expense Surcharge and the Accrued Principal plus any Deficiency plus any other amounts payable hereunder less any interest earnings received on such account during the previous Collection Period. Any Pledged Tax in excess of such amount may be used by the City for any lawful purpose and shall be free of the pledge made in this Resolution. The amounts in such special account shall be used to pay Loan Repayments as they come due and for no other purpose.

Section 5. Consents, Certificates and Additional Debt.

5.1. Written Consents. The City has not granted and shall not grant or permit to exist any lien on the Pledged Tax without the written consent of the District, except as provided hereafter and except for liens securing Sales Tax Debt outstanding on the date of the Loan Agreement which has been disclosed in Appendix F thereof.

5.2. Certification of Compliance with Rate Covenant. At or before the Closing of the Loan, the City shall deliver to the District a certificate in the form attached as Appendix E of the Loan Agreement and executed by the Finance Officer of the City, showing that the Pledged Tax received by the City during 12 consecutive months out of 15 consecutive months immediately preceding the issuance of the Revenue Bond was at least equal to 120% of the Maximum Annual Sales Tax Debt Service. The Maximum Annual Sales Tax Debt Service shall be calculated by the City as of the date of the Closing of the Loan and shall include the Revenue Bond in the Sales Tax Debt.

5.3. Additional Debt. The City shall not incur any Debt which has a lien on or right to payment from the Pledged Tax which is superior to that of this Loan Agreement and the City Bond. The City may incur Debt which is on a parity with or subordinate to this Loan Agreement and the City Bond under the following conditions:

5.3.1. Debt secured by Pledged Tax may be incurred to pay or prepay or defease other Debt secured by Pledged Tax if the maximum annual debt service of the new Debt is no greater than that of the Debt being paid, prepaid or defeased.

5.3.2. Debt secured by Pledged Tax may also be incurred so long as prior to the issuance of such Debt the City has delivered to the District and the Trustee a certificate prepared by a Consultant showing that the Pledged Tax collected for any 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of the proposed Debt was at least equal to 120% of the maximum annual debt service of all Debt secured by Pledged Tax which would be outstanding immediately after the issuance of the proposed Debt.

5.3.3. such Debt is not variable rate debt; or

5.3.4. the principal and interest on such Debt in any fiscal year are less than 150% of the payment of principal and interest on such Debt for any other fiscal year; and

5.3.5. the District has consented in writing to the incurring of such Debt.

SECTION 6. Approval of Paying Agent/Registrar. The Revenue Bond shall be payable at the office of The First National Bank in Sioux Falls, Sioux Falls, South Dakota, hereby designated as paying agent and registrar.

Section 7. Approval of Bond Counsel. Meierhenry Sargent LLP is hereby retained as Bond Counsel with respect to the Revenue Bond.

Section 8. Tax Matters. The Interest on the Revenue Bond shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (?the Code?) and applicable Treasury Regulations (the ?Regulations?).

Section 9. Covenants.

The City hereby covenants and agrees with the District and other owners of the Revenue Bond as follows:

9.1. The City will punctually perform all duties with reference to the Project and the Revenue Bond required by the constitution and laws of the State of South Dakota and by this Resolution.

9.2. The City agrees and covenants that it will promptly construct the improvements included in the Project.

Section 10. The City covenants and agrees with the District and other owners of the Revenue Bond that it will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any portion of the Revenue Bond remains outstanding; that it will maintain insurance on the System for the benefit of the holders of the Revenue Bond in an amount which usually would be carried by private companies in a similar type of business; that it will prepare, keep and file records, statements and accounts as provided for in this Resolution and the Loan Agreement.

Section 11. Depositories. The Finance Officer shall cause all moneys pertaining to the Funds and Accounts to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of SDCL Ch. 4-6A, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No money shall at any time be withdrawn from such deposit accounts except for the purposes of the Funds and Accounts as authorized in this Resolution; except that moneys from time to time on hand in the Funds and Accounts may at any time, in the discretion of the City?s governing body, be invested in securities permitted by the provisions of SDCL 4-5-6; provided, however, that the Depreciation Fund may be invested in such securities maturing not later than ten years from the date of the investment. Income received from the deposit or investment of moneys shall be credited to the Fund or Account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys therein.

Section 12. Severability.

If any section, paragraph, clause or provision of this Resolution, the Loan Agreement, the Revenue Bond, or any other Loan Document shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Resolution or said Loan Agreement, Revenue Bond, or any other Loan Document.

Section 13. Authorization of City Officials.

The Mayor, Finance Officer, City Attorney and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein.

The following bids had been opened Friday, July 30, for the Sewer Crossing the Railroad Project:

H & W Contracting, Sioux Falls,SD - $367,000

Dahme Construction, Aberdeen,SD - $279,979

Quam Construction, Wilmar, MN - $278,703.50

Dahme Construction had called requesting a South Dakota preference be applied. A decision was tabled until after Executive Session with the City Attorney.

Moved by Opp and seconded by Hanlon to hire Allen McKiver temporarily as a heavy equipment operator for $18.00 per hour. All members present voted aye.

Finance Officer Lowary reported that Credit Collection Bureau has offered to do collections at a rate of 29.7% rather than our current rate of 50% from the Credit Bureau of Watertown. The Council authorized the finance officer to try the new system for the next group of accounts to be turned over. A discussion on why collection services should be needed if a very stern enforcement of delinquent policy was taken. Moved by Opp and seconded by Hanlon to mail a shut-off notice ten days after delinquency allowing a hearing before the City Council for extraordinary circumstances or face shut off within 15 days. Moved by Anderson and seconded by Hamilton to amend the motion to give the shutoff notice after the ten days and shut off without exception at the 30 day delinquent. All members voted aye to allow the amendment. All members voted aye to the amended motion. Shut off fees, complete payment of the bill, and a larger deposit will be required to reconnect after shut off.

Hamilton reported on the Planning and Zoning review of their ordinances. These changes will be incorporated into the revised ordinances later this year.

The proposed budget for 2011 was introduced. Various street projects were discussed.

Council adjourned into executive session at 8:53pm to discuss legal matters on a motion by Brotherton and seconded by Anderson. All members present voted aye. Council reconvened into regular session at 9:24pm.

Moved by Hanlon and seconded by Opp to accept the bid for $279,979 from Dahme Construction for the Sewer Crossing under the Railroad based on the in state SD preference upon approval of SD DENR. All members present voted aye.

Meeting adjourned.

Roy L. Olson, Mayor

Anita Lowary, Finance Officer

Published once at an approximate cost of $153.00.

Return to Top　

Return to Top