Proceedings_City of Hot Springs October 5, 2020


Unofficial Minutes of the Regular Meeting of the City Council
 of the City of Hot Springs
October 5, 2020
A regular meeting of the City Council of the City of Hot Springs, South Dakota, was convened on October 5, 2020 at 7:00 p.m. at the Mueller Civic Center with Mayor Bob Nelson presiding
Members Present: Wes Grimes, JR Huddleston, Debra Johnston, Bill Lukens, Larry Pratt, Craig Romey and Caitlin Turner
Members Absent: David Burris
Staff Present: City Administrator John Gregory, Finance Officer Misty Summers-Walton and MCC Staff Karl Bochert
All actions recorded in these minutes were by unanimous vote unless otherwise stated.
Agenda: Mayor Nelson requested to amend the agenda to change personnel i from last day to termination, add new business item i, possible motion/discussion to approve Dorsey & Whitney LLP to provide bond counsel services for the City of Hot Springs in relation to the Fall River Health Services Hospital Revenue Bonds, Series 2020 and to delete executive session. Moved by Lukens, seconded by Huddleston, to approve the amended agenda
Minutes: Moved by Huddleston, seconded by Turner, to approve the minutes from the 9/21/20 regular council meeting
Claims: Moved by Romey, seconded by Pratt, to approve the bills in between of $116,771.01
Bills in Between: Oct. 5, 2020: City of Hot Springs, $22,071.27, General Payroll; City of Hot Springs, $10,709.18, Golf Payroll; City of Hot Springs, $10,518.40, Water Payroll; City of Hot Springs, $7,918.74, Sewer Payroll; City of Hot Springs, $11,969.35, Evans Plunge Payroll; City of Hot Springs, $18,621.83, Payroll Federal Deposit Deductions; City of Hot Springs, $2,772.55, Council Payroll; City of Hot Springs, $779.90, Council Payroll Federal Deposit Deductions; AFLAC, $972.14, Premium; Avesis , $163.45, Premium; Delta Dental, $1,081.68, Premium; Hot Springs Fire Department, $7,500.00, Allotment; Credit Collection Bureau, $378.52, Garnishment; Office of Child Support Enforcement, $1,298.00, Garnishment; Black Hills Energy, $11,562.83, Utilities; Battle Mountain Humane Society, $650.00, Monthly Contract/Animal Boarding ACO; Jeff Suntken, $137.54, Water Deposit Refund; Jessica Luther, $1,085.00, Water Meter Reading; Theresa Maas, $605.20, Police Dept & City Hall Janitorial; Wells Fargo Financial Leasing, $4,180.38, Yamaha Golf Cart Payment; United Way, $208.00, 2nd & 3rd Quarterly Employee Contributions; Dollar General -Library, $12.00, Vinyl Gloves, Pens; Down Country Roads Magazine - Lib, $40.00, 1 Yr Renewal Subscription; Demco - Library, $478.03, Name tags, Bookmarks, Tape, Labels; Marco - Library, $81.46, Sept Copier Contract; Bomgaars - Library, $70.97, Hand Sanitizer, Wipes; Ace Hardware - Library, $8.63, Batteries; Vanguard - Library, $892.59, 2000 Library Cards; Northwest Pipe - Library, $3.37, Sillcock key; Total: $116,771.01
Moved by Lukens, seconded by Turner, to approve the current claims of $370,650.1
Current Claims: Oct. 5, 2020: 605 Fire Protection Llc, $380.00, Annual Fire Sprinkler Inspection; A & H Truck Salvage, $60.00, Muffler; Ace Hardware, $584.29, 2 Duct Tape Acushnet Company, $119.36, 5 Dz Balls; B. H. Technologies, Llc, $13,155.00, May-Sept 2020 Monthly Charges, Barracuda Backup, Barracuda Spam Filter; Bierschbach Equipment & Supply, $870.00, 10 Traffic Control Cones; Black Hills Energy, $14,153.37, Monthly Charges; Bomgaars, $1,313.19, 2 Drill Batteries, 4 Welding Rods; Bradeen Real Estate & Auctions, $12,000.00, 2009 Ford F350 Vin#3036; Brosz Engineering Inc, $29,895.00, Engineering Jennings Bridge; Builders Firstsource, $1,102.91, 20 Bg Mulch; Chamber Of Commerce, $12,282.58, 80% Lld Municipal Tax Dist 9/1 - 9/21/20; Core & Main (Hd Supply), $749.72, 10 Meters, 24 Iperl Touchpad; Cwd, $1,449.26, Candy, Nuts, Deli Meats, Cheese, Onions, Chips, Salads, Hambgr, Hot Dogs, Brats; Cwt, $589.00, Cwt Worker 62 Hrs at $9.50/Hr; Dietzler Construction, $250,506.00, Pay App #3 Work Performed Jennings Bridge Replacement; Ecolab Pest Elim, $151.68, Aug & Sept Pest Control; Fall River Auto, $340.43, Oil Filter; Fisher Beverage, $829.95, 8 Cs, 1 6Pk Btl, 1 4Pk Cn; Flint Electric, $1,275.30, Repair/Replace Conduit & Add Slip Joints At Control Box American Legion For Purpose Of Jennings Bridge Construction; Garland Goff Attorney at Law, $4,366.60, Sept 2020 Legal Services Rendered; Hot Springs Theatre Llc, $420.00, 1 Yr Advertising Poster Location; Lawrence & Schiller, $5,322.72, August 2020 Expedia Group, Booking, Mightyhive, Sd Magazine; Liberty Chrsyler Center Llc, $335.61, Replace Brake Pads, Rotate Rotors, Rotate Tires; Lighting Maintenance,Contracts, $530.88, Monthly Light Maint Contract; Lynns Dakotamart, $182.40, 23 Bg Buns, Bread, Butter, Chips, Tortillas, Lettuce, 3Bx Crackers, 9 Mustard, 8 Ketchup, 8 Pg Cookies; M. G. Oil Company, $954.46, 324 Gal Gas, 36 Gal Ethonal, 170 Gal Deisel; Northwest Pipe Fittings Inc, $4,051.21, Flange, Gasket, Bolts, Nut; Pacer Minerals Llc, $288.00, 48 Bg Ball Field Chalk; Pepsi, $887.95, Pop, Kickstart, Tea; Pete Lien & Sons, Inc, $709.80, 40 Tn Sand (Mix W/ Ice Slicer); Plumbing Heating & A/C Service, $292.28, Replace Hvac Supply Line Hose; Prestige Flag, $1,827.81, 18 Smarty Flags, 28 Flag Sticks, 18 Alum Cups; Quality Brands Of The Black Hills, $829.60, 6 30Pk Cn, 14 24Pk Cn; Rapid Delivery, $14.66, Nwp Parts Delivery; S. D. Department Of Revenue, $21.20, Title & Registration Plates 2009 Ford F350 Vin#3036; Sanitation Products, $3,939.73, 2 Led Lights, Brooms, Hoses, 6 Shoes; Servall, $164.45, Rugs; Signs Now, $1,147.97, 2020 Dodge Durango Install Vehicle Graphics 2 Door Vinyl Wraps, Hood Wrap, 2 Reflective Prints, Veterans Town Decal; Simon Materials, $396.22, Base Course(N River Break); Sonnys, $21.15, Spray Butter, Coffee; Southern Hills Fire & Safety, $146.00, New Fire Extinquisher; Sports Turf Irrigation, $505.00, 3 Bottom Valves, 6 Balloon Valves, 50 Nuts; Sturdevants Auto Parts, $808.29, Disc Brake Set, Front Rotor; Turf & Soil Diagnostics, $210.00, 2 Particle Size Analysis; Twilight First Aid & Safety, $25.90, 2 Bx Lens Wipes; Verizonwireless, $443.24, Monthly Charges; Total: $370,650.17
Moved by Johnston, seconded by Romey, to approve the Wells Fargo credit card claims of $3,475.22
Credit Card Claims: Oct. 5, 2020: The Gap - 18 face masks, $239.56; Avery - 100 round labels, $26.95; Oriental Trading Co - Color Valentine treat bags, fall craft assortments, magnetic craft kit, $45.64; Macy’s - 24 child face masks, $159.75; Nordstrom - 32 child face masks, $153.36; Amazon - 1000 dvd sleeves, 24pk kids scissors, book corner protectors, $86.90; Amazon - 10 books, 3 dvd, $167.97; Amazon - 2 infrared thermometers, $116.38; Amazon - 40” Smart tv, wireless keyboard/mouse, $235.98; Squarespace - SHGC website hosting annual fee, $216.00; Amazon - Handcuff & pouch, $85.34; Amazon - 2 rolls evidence tape, 100pk evidence bags, arrowhead split edge tape, $80.56; Vista Print - 500 business cards, metal mesh card holder, $76.14; - Svc charge 8/18 - 9/18/20, insr purchased, $36.10; Intnl Code Council - 2018 BI study guide, $64.00; - 7 day trial, $1.95; Acco Brands Direct - planner refill, $56.08; Zoom - monthly standard pro, $15.96; Grossenberg Implement Inc - Plow mount, $595.00; Holiday Inn Express Pierre - Lodging B. Nelson, D Johnston SDML Elected Officials Workshop, $154.00; USPO - Postage to return shoes to guest (reimbursed), $12.69; - 48 pr goggles, $219.26; - Lifeguard job posting, $199.00; Amazon - 2 pk stanchions, anti-fatique floor mat, brass eterna cartridge, $163.68; Amazon - 2 kuppet spin dryers, 3 ss replacement pool steps, $266.97
101 General Fund: $2,397.62
620 Golf Course: $216.00
621 Evans Plunge: $861.60
Proclamation: Kimberly Wallace from the Black Hills Area Habitat for Humanity discussed their local efforts to get a Governors home placed on the old water tower lots. Mayor Nelson read a proclamation declaring October 5, 2020, as World Habitat Day.
Bid Opening: At 7:10 p.m. Mayor Nelson opened the 3 sealed bids received for the 39 Hay Bales average weight 1600lbs. at the Hot Springs Municipal Airport; Bob Anderson, $25/bale=$975, Kurt Seegrist, $1,200, Dale Jensen, $75/ton =$2,340. Moved by Romey seconded by Grimes to award the bid to Dale Jensen
Public Hearing: Mayor Nelson opened the public hearing at 7:15 p.m. on the proposal to issue revenue refunding bonds in an aggregate principal amount not to exceed $10,000,000 and loan said amount to Fall River Health Services (FRHS), a South Dakota nonprofit corporation, for the purpose of providing funds to refinance certain outstanding indebtedness of Fall River Health Services. Comments were heard from; David Grossklaus, Bond Counsel with Dorsey &Whitney LLP, who described the “fairly simple” process for the Council and the benefits to Fall River Health Services partnering with the City and County to refinance their existing debt in this way. He covered the SD State Laws and the Federal Tax Code provisions that regulate and allow for conduit issuing. He stated this kind of debt is NOT considered a issuances of the conduit issuers, and that the City has NO legal authority to use City resources to repay this debt, confirming that debt repayments will only be paid from net revenues of the hospital. Councilman Huddleston asked to confirm that the City is not liable or at risk for any of this, Mr. Grossklaus confirmed that is true, he also stated that all fees associated with financing will also be paid by the hospital, including administrative, legal and advertising fees. He reviewed the documents provided to the Council, in addition to the ordinance there is the engagement letter, loan agreement, trust indenture and purchase agreement. Mayor Nelson asked to confirm that the letter sent via email dated 10/1/20 is the engagement letter and once again asked to confirm all expenses related to the debt issuance, including our own Attorney fees associated are included. Councilman Lukens asked to clarify the sequence of required events confirming the City’s actions are and have been appropriate, Mr. Grossklaus confirmed and stated that after tonight’s meeting all additional action is administrative. Jesse Naze, Chief Financial Officer at FRHS outlined the history of the current debt issuance and the benefits of refinancing at this time. He said the savings will allow the hospital to continue to expand and do more good things in our community. Finance Officer Walton asked about term of the debt, Mr. Naze said there is a 7.5-10 yr. lock out period, meaning they would not look to refinance until after that time. No other comments were heard. Mayor Nelson closed the hearing at 7:36 p.m. Moved by Huddleston, seconded by Pratt to approve the issuance of the revenue bonds
Personnel: Moved by Johnston, seconded by Huddleston, to approve personnel items a,i; Cole Richards, FT Wastewater Foreman, longevity increase $25.21/hr. effective 10/1/20, Chris Kattke, FT Mueller Center Facility Director, longevity increase $16.52/hr. effective 10/10/20, Shaun Hylle, FT Water Foreman, longevity increase $24.36/hr. effective 10/27/20, Brooke Jensen, PT EPMS Front Desk $9.55/hr. effective 9/28/20, Kolby Bensen, PT Class 1 Maintenance/Operator last day effective 10/2/20, RESCINDED * Kyle Holcomb, PT EPMS Head Lifeguard last day effective 9/26/20, Bill Wainman, FT Police Captain, last day effective 10/9/20, Jeremy Bertocki, PT EPMS Custodian, termination effective 9/29/20, Alan Reynolds, PT Class 1 Maintenance/Operator terminated effective 10/2/20
Committee Reports: Committee reports were heard by; Administrative and Finance: Caitlin Turner-PD surplus weapon auction, pending ordinance revisions, potential commercial tenant at Airport, Armory RFP, future meetings are back to first Monday of the month. Next mtg. 11/2, 1 p.m. at CH. Airport Advisory Committee: Bill Lukens-hangar construction update, need to update new hangar construction guidelines, AIP KLJ, Emergency response plan notifications section updated, still working to obtain Jet A proposals, post reviewed fly-in and balloon festival events and discussed an Airport event application form. Next mtg. 10/29, 8 a.m. at Airport. Custer/Fall River Regional Waste Management District: Larry Pratt-Next mtg. 11/12, 7 p.m. at MCC. Downtown Historic Preservation Commission: Debra Johnston-Next mtg. 10/7, 5 p.m. at Library-will be discussing historic district ordinance revisions. Evans Plunge Advisory Committee: Larry Pratt- Next mtg. 10/8, Noon at EPMS. Parks, Recreation, Beautification & Cultural Development: Wes Grimes-Next mtg. 10/7, 3 p.m. at CH. Planning & Zoning Commission: Caitlin Turner-Next mtg. 10/21, 7 p.m. at CH. Public Safety: Bill Lukens/JR Huddleston-Next mtg. 10/21, 1 p.m. at CH. Public Works: Craig Romey-Next mtg. 10/13, 1 p.m. at CH Southern Hills Economic Development: JR Huddleston-met with SHEDCO Executive Director who reports things are very slow right now due to COVID. Working with business owners to stay open and pursue COVID relief opportunities, working with certain qualified individuals on grants for home remodeling up to $7K, and with the HSSD on starting a satellite learning location for Western Dakota Tech. Southern Hills Golf Course Advisory Committee: Bob Nelson- Next mtg. 10/13, 5 p.m. at CH. The public is welcome to attend committee meetings.
 Ordinance: Moved by Lukens, seconded by Johnston, to approve the second reading of Ordinance 1217: An Ordinance revising Title V Public Works, Chapter 51 Water, §51.07 Disputed Water Bills (B)(1) testing water meters at the request of user. Roll call vote; Grimes, Huddleston, Johnston, Lukens, Pratt, Romey and Turner voted in favor
Ordinance 1217
WHEREAS, the City of Hot Springs, pursuant to SDCL §9-19-3 may amend and revise ordinances as may be necessary; and
WHEREAS, the City of Hot Springs has previously adopted ordinances regulating public works within the City; and
WHEREAS , the City of Hot Springs has identified the need to revise the language in §51.07 (B) Testing Water Meters at the Request of User updating applicable meter testing charges/fees.
THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HOT SPRINGS, that Title V Public Works, Chapter 51 Water §51.07 (B)(1) be revised and amended as follows:
Chapter 51 Water.
(B) Testing water meters at the request of user.
(1)  In addition to routine city meter tests, the city will test a meter whenever it is requested to do so by a water user. A fee, set by resolution of the City Council, shall be charged for the removal of the meters to be tested. The fee shall be paid to the city by the water user in advance of such requested test. User is also be responsible for the applicable third party testing fees as well as any shipping charges.
Severability. The provisions of this ordinance are severable. If any provision of this ordinance or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application.
Effective Date. This Ordinance will become effective 20 days following publication, which will occur after the ordinance receives second and final reading by the City Council and is signed by the Mayor.
Dated this 5th day of October 2020.
Bob Nelson, Mayor
Misty Summers-Walton, Finance Officer
First Reading: 9/21/2020
Second Reading: 10/5/2020
Published: 10/15/2020
Effective: 11/4/2020
Moved by Lukens, seconded by Pratt, to approve the second reading of Ordinance 1218: An Ordinance providing for the issuance and sale of economic development refunding revenue bonds, to provide funds for the refinancing of an economic development project on behalf of Fall River Health Services, a South Dakota nonprofit corporation. Roll call vote; Grimes, Huddleston, Johnston, Lukens, Pratt, Romey and Turner voted in favor.
Ordinance No. 1218
BE IT ORDAINED by the City Council of the City of Hot Springs, South Dakota (the “City” or the “Issuer”), as follows:
1. Legal Authority.  The City is, by the Constitution and laws of the State of South Dakota, including South Dakota Codified Laws, Chapter 9-54, as amended, and Chapter 6 8B, as amended (collectively referred to as the “Act”), authorized to issue and sell its revenue bonds for the purpose of financing or refinancing the cost of economic development projects and to enter into agreements necessary or convenient in the exercise of the powers granted by the Act.
2. Authorization of Refunding.  Fall River Health Services, a South Dakota nonprofit corporation (the “Borrower”), has proposed that the City issue its Economic Development Refunding Revenue Bonds, Series 2020 (the “Bonds”) and loan the proceeds thereof to the Borrower to be used to pay the principal of and interest on certain outstanding indebtedness of the Borrower (the “Existing Indebtedness”), the proceeds of which were used to acquire and construct certain health service facilities of the Borrower, located at 1201 Highway 71 South in the City (the “Project”), to fund any reserve funds and to pay costs related to the issuance of the Bonds.
In order to provide for the refunding in full of the Existing Indebtedness (the “Refunding”), the Borrower has proposed that the City issue and sell its Economic Development Refunding Revenue Bonds (Fall River Health Services Project), Series 2020 (the “Bonds”), pursuant to the Act, and loan the proceeds thereof to the Borrower pursuant to a loan agreement under terms and conditions requiring the Borrower to undertake and complete the Refunding, fund any necessary reserves and pay certain costs of issuance of the Bonds and to make loan repayments at times and in amounts sufficient to provide for payment of the Bonds in full, when due.
The City hereby determines to proceed with the Refunding, and the issuance of the Bonds, as proposed by the Borrower, in accordance with the terms and provisions hereof.
3. Public Hearing.  After publication of the Ordinance, including the notice of public hearing attached hereto as Exhibit A, on the 5th day of October, 2020, the City held a hearing as required by all in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and all comments made at such public hearing will have been recorded in the minutes of the meeting of the City, and the City deems it necessary and advisable to proceed with the issuance of the Bonds and the loan of the proceeds of the Bonds to the Borrower.
4. Documents Presented.  Forms of the following documents relating to the Bonds have been submitted to the City and are now on file in the office of the Finance Officer:
(a) Loan Agreement between the City and the Borrower (the “Loan Agreement”), whereby the City agrees to make a loan to the Borrower of the gross proceeds of sale of the Bonds and the Borrower agrees to complete the Refunding and to pay amounts in repayment of the loan sufficient to provide for the full and prompt payment of the principal of, premium, if any, and interest on the Bonds when due; and
(b) Trust Indenture (the “Indenture”), between the City and UMB Bank, N.A., as trustee (the “Trustee”), authorizing the issuance of and pledging certain revenues, including those to be derived from the Loan Agreement, as security for, the Bonds, and setting forth proposed recitals, covenants and agreements relating thereto; and
(c) Bond Purchase Agreement (the “Bond Purchase Agreement”), by and between UMB Bank, N.A. (the “Underwriter”), the Borrower and the City, providing for the purchase of the Bonds from the City by the Underwriter and setting the terms and conditions of purchase.
5. Findings.  It is hereby found, determined and declared that:
(a) The Refunding is authorized by the Act.
(b) The issuance of the Bonds will carry out a public purpose and benefit to and promotes the welfare of the citizens of the City and further the purposes of the Act.
(c) There is no litigation pending or, to the best of its knowledge, threatened against the City relating to the Bonds, the Loan Agreement, the Bond Purchase Agreement or the Indenture or questioning the due organization of the City, or the powers or authority of the City to issue the Bonds and undertake the transactions contemplated hereby.
(d) The execution, delivery and performance of the City’s obligations under the Bonds, the Indenture, the Bond Purchase Agreement and the Loan Agreement do not and will not violate any order of any court or other agency of government or in which the City is a party, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument.
(e) It is desirable that the Bonds be issued by the City upon the terms set forth in the Indenture, under the provisions of which the City’s interest in the Loan Agreement will be pledged to the Trustee as security for the payment of principal of, premium, if any, and interest on the Bonds.
(f) The Loan Agreement provides for payments by the Borrower to the Trustee for the account of the City of such amounts as will be sufficient to pay the principal of, premium, if any, and interest on the Bonds when due.  The Loan Agreement obligates the Borrower to pay or cause to be paid all costs of operation and maintenance of the Project Facilities, including adequate insurance, taxes and special assessments.
(g) Under the provisions of the Act, and as provided in the Loan Agreement and Indenture, the Bonds are not to be payable from nor charged upon any funds other than amounts payable pursuant to the Loan Agreement and moneys in the funds and accounts held by the Trustee which are pledged to the payment thereof; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City (other than the interest of the City in the Loan Repayments to be made by the Borrower under the Loan Agreement); and each Bond issued under the Indenture shall recite that such Bond is issued pursuant to the Act and that such Bond, including interest thereon, is payable solely from the sources described therein and shall not constitute or give rise to a charge against the general credit or taxing powers of the City.
6. Approval and Execution of Documents.  The forms of Loan Agreement, Indenture and Bond Purchase Agreement, referred to in paragraph 2, are approved.  The Loan Agreement and Indenture shall be executed in the name and on behalf of the City by the Mayor and the Finance Officer, or executed by other officers of the City, in substantially the form on file, but with all such changes therein, not inconsistent with the Act or other law, as may be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof, and then shall be delivered to the Trustee.  The Bond Purchase Agreement shall be executed by one or more officers of the City, as provided therein.  The City hereby appoints UMB Bank, N.A. as trustee under the Indenture.
7. Approval, Execution and Delivery of Bonds.  The City shall proceed forthwith to issue the Bonds in an aggregate principal amount of not to exceed $10,000,000, and to be in the forms and upon the terms set forth in the Indenture, which terms are for this purpose incorporated in this Ordinance and made a part hereof; provided, however, that the maturities of the Bonds, the interest rates thereon, and any provisions for the optional or mandatory redemption thereof shall all be as set forth in the final form of the Indenture to be approved, executed and delivered by the officers of the City authorized to do so by the provisions of this Ordinance, which approval shall be conclusively evidenced by such execution and delivery; but provided further that, in no event, shall such rates of interest on the Bonds produce a net interest cost in excess of 5.00% per annum.  The Underwriter has agreed pursuant to the provisions of the Bond Purchase Agreement, and subject to the conditions therein set forth, to purchase the Bonds at the purchase price set forth in the Bond Purchase Agreement, and said purchase price is hereby found to be favorable and is hereby accepted.  The Mayor, Finance Officer and other City officers are authorized and directed to prepare and execute the Bonds as prescribed in the Indenture and to deliver them to the Trustee, together with a certified copy of this Ordinance and the other documents required by Section 2.08 of the Indenture, for authentication, registration and delivery to the Underwriter.  As provided in the Indenture, each Bond shall contain a recital that it is issued pursuant to the Act, and such recital shall, to the full extent permitted by law, be conclusive evidence of the validity and regularity of the issuance thereof.
8. Consent to the Use of Preliminary Official Statement and Official Statement.  The City hereby consents to the use and distribution of the Preliminary Official Statement and the Official Statement relating to the Bonds in connection with the offering and sale of the Bonds by the Underwriter.  Notwithstanding the foregoing, the City has not prepared or assisted in the preparation of the Preliminary Official Statement or the Official Statement and, except for the information contained under the captions “THE CITY” and “LITIGATION - The City,” the City disclaims any responsibility for the disclosures set forth in the Preliminary Official Statement or the Official Statement or otherwise made in connection with the offer, sale and distribution of the Bonds.  For purposes of Rule 15c2-12(b)(1) of the Securities and Exchange Commission, the City deems the information in the Preliminary Official Statement under the captions “THE CITY” and “LITIGATION – The City” to be final as of its date.
9. Certificates, etc.  The Mayor, Finance Officer and other officers of the City are authorized and directed to prepare and furnish to bond counsel and the purchaser of the Bonds, when issued, certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers’ custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein.
10. Qualified Tax-Exempt Obligations.  In order to qualify the Bonds as “qualified tax exempt obligations” within the meaning of Section 265(b)(3) of the Code, and the City hereby makes the following factual statements and representations:
 (A) The City hereby designates the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code;
 (B) The reasonably anticipated amount of tax-exempt obligations (other than obligations described in clause (ii) of Section 265(b)(3)(c) of the Code) which will be issued by the City (and all entities whose obligations will be aggregated with those of the City) during this calendar year 2020 will not exceed $10,000,000; and
 (C) Not more than $10,000,000 of obligations issued by the City during this calendar year 2020 (including the Bonds) have been designated for purposes of Section 265(b)(3) of the Code.
11. Effective Date; Repeals.  This Ordinance shall become effective twenty days following publication and all provisions of ordinances, resolutions and other actions and proceedings of the City which are in any way inconsistent with the terms and provisions of this Ordinance are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Ordinance.
The above and foregoing Ordinance was moved for adoption by Council Member Lukens, seconded by Pratt and upon roll call, Grimes, Huddleston, Johnston, Lukens, Pratt, Romey and Turner voted aye,
None voted nay, whereupon the Mayor declared the Ordinance to be duly passed and adopted.
Bob Nelson, Mayor
Misty Summers-Walton, Finance Officer
First Reading: September 21, 2020.
Second Reading and Adoption: October 5, 2020
Published: October 15, 2020.
Effective Date: November 5, 2020.
New Business: Moved by Turner, seconded by Johnston, to approve Agreement for Professional Services for Airport Project # AIP 3-46-0022-013-2020 with KLJ Engineering, LLC, preliminary and design services for multi aircraft tee hangar and site grading-design and environmental services
Moved by Pratt, seconded by Turner, to approve and authorize the Mayor to sign the pre-application for federal assistance in FY2021 to construct a 6 Unit Tee Hangar and Associated Taxilane Construction
Moved by Johnston, seconded by Turner, to authorize the Finance Officer to confirm the EPMS bond refunding for $1,360,000 with Bond Counsel Colliers Securities
Moved by Turner, seconded by Romey, to approve and advertise the request for proposals for the development of residential or workforce housing on the buildable lots and subsequent purchase of those properties located in the Fargo Prentice Addition to Hot Springs, Lots 1, 2, 3, 4, 5, 43, 44, 45, 46, 47, 48 & 49 also known as the Armory Property-written proposals accepted until 5pm on November 11, 2020
Moved by Lukens, seconded by Huddleston, to approve a plat of Bishop Tract, Tract A Revised, Tract B1 Revised, Tract B2 Revised, and a Revised Public Access and Utility Easement, all located in Block 19, Stewarts Addition to the Town, now City of Hot Springs, Fall River County, South Dakota
Moved by Johnston, seconded by Grimes, to provide City concurrence to Frank Birkholt to have Black Hills Energy remove the wooden light pole and streetlight, at his expense, at 944 South 6th Street
Moved by Lukens, seconded by Johnston, to approve travel/training request from City Administrator John Gregory and Fleet Mechanic Steve Alexander to attend the SD Surplus Auction in Sturgis SD on 9/18/20
Moved by Turner, seconded by Johnston, to approve travel/training request from Police Chief Mike Close to attend the Law Enforcement Coordinating Committee in Sioux Falls SD 11/16/20 – 11/19/20
Moved by Huddleston, seconded by Romey, to approve Dorsey & Whitney LLP to provide bond counsel services for the City of Hot Springs in relation to the Fall River Health Services Hospital Revenue Bonds, Series 2020  
Finance Officer Report: Reviewed monthly financial reports in detail with Council, discussed 2021 municipal tax levy and the subsequent decrease in the overall mill levy from 6.89 to 6.51, reported on the pandemic impacts on revenue collection throughout the City. Discussed the virtual SDML Annual Conference beginning 10/6. Discussed how our EPMS debt refinance will decrease the amount the City will have available to assist FRHS as $10MM is the maximum amount allowed, reviewed recommendation to refinance $1.36MM of EPMS debt. Working on 2021 Citywide Fee Resolution, Wage Resolutions and the Resolutions designating official newspaper and approved banking institutions as well as the final appropriation ordinance and contingency transfer resolutions for 2020
City Administrator Report: Update on recent SD-DOT preliminary design submittals by ISG and Public Works Engineer on the CITY PROJECT, which included final configuration and foundation design for the Suspended Sidewalk and the replacement sewer and water main drawings. FMG Engineering has submitted roadway profiles, storm drainage details, curb and gutter and street lighting drawings for the STATE PROJECT. The Jennings Bridge replacement project continues to remain on schedule with abutment and bridge deck beam installations in-progress. The approved Phase I - Fall River Channel Restoration (Pilot Program) is expected to begin next week. Summarized recent activities of our Streets, Maintenance, Parks and combined Utilities Departments, which included: continued alley maintenance, snow equipment preparations and free dump week. The utilities crews have responded to sewer main back-ups and residential water leak issues. The Public Works Engineer is planning for the next phase of WWTP improvements as suggested by DENR. Reminded the public of Library activities that are planned for October, including youth programs and free computer skills training.
Mayor Report: The 2020 Boys class A golf tournament is being held at the Hot Springs golf course. Tournament play began today and will conclude on Tuesday. Head out to the golf course and support our high school golf team. I want to remind everyone that Captain Wainman’s last day with the City is Friday, October 9 and there will be a retirement party for Captain Wainman at the Mueller Center on Friday at 1 p.m. everyone is welcome to attend.
Adjournment: Being no further business to come before the Council, moved by Romey, seconded by Huddleston, to adjourn at 8:27 p.m.
Bob Nelson, Mayor
Misty Summers-Walton, Finance Officer
Published once at the total approximate cost of $361.62
Published: Oct. 15, 2020

Fall River County Herald Star

EDGEMONT OFFICE: 410 2nd Avenue   Edgemont, SD 57735-0660 | 605.662.7201
HOT SPRINGS OFFICE: 334 S. Chicago St.  Hot Springs, SD 57747 | 605.745.3930
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