Call to Order: Mayor Richard McKay called the Regular Meeting of the Hay Springs City Council to order at 7:01 p.m. Council persons Jim Varvel, Keith Kearns and Marvin Blundell were present. Luke Marcy was absent. Attorney Jamian Simmons was absent. It was noted that the Open Meetings Act is posted.
Minutes Approval: Kearns made motion, Blundell seconded to approve the Minutes from September 10th, 2019 Regular Council Meeting. All voted aye. Motion carried.
Agenda Approval: Varvel made motion, Kearns seconded to approve the agenda for October 8th, 2019 Regular Council Meeting. All voted aye. Motion carried.
Chamber: SDL for New Year’s Eve Party on December 31st, 2019: Sandy Heesacker requested an SDL for the Chamber of Commerce New Year’s Eve Party on December 31st, 2019. Varvel made motion, Kearns seconded. All voted aye. Motion carried.
Amanda Haller, Security First Insurance: bids: Amanda Haller presented the Council with proposed insurance quotes for the City of Hay Springs 2019/2020, as requested last year.
EMC Insurance Companies is the City’s current insurance provider. Commercial Property $14,434. Blanket Coverage $3,564,000. Deductible $1,000. Total Proposed Premium $37,886. The Fire Department was included in the quote, although they separately pay their portion of the insurance. EMC Insurance offers an annual dividend check. In 2018 the City received a dividend check of $4,645. In 2019 the City received a dividend check of $6,931.
Jones Group was the next bid listing. This Group does not write the insurance, they broker it out with other companies. The City’s part of the insurance would then be with a Group called Continental Western; and the Fire Department’s part of the insurance would then be with a Group called Fire Pack; and then the Worker’s Compensation would be with another group, or Pool, but it would all be under the Jones Group Insurance. If you have a Claim, there would be different contact people for that. Commercial Property $13,878. Blanket Coverage $2,605,300. Deductible $1,000. Total Proposed Premium $37,241. They do not offer an annual dividend check.
Travelers Insurance was the final bid listing. The Worker’s Compensation premium for municipalities is $15,000. Minimum deductible $2,500.
The City’s new insurance goes into effect November 1st, 2019. Amanda did note that insurance companies prefer the City does not bid it out again for another three years. There was much discussion. The Council unanimously agreed to proceed with EMC Insurance Companies and to continue insurance coverage through EMC for another three years.
Don Dye, M.C. Schaff & Associates: Alley Project Change-Order #2: Don Dye was not present. Alley Project Change Order #2 was not available for Council review at this meeting. Mayor McKay gave the Council a brief update. Tabled until next month.
Public Concerns: None.
Reports of Officers, Boards and Committees:
Street/Water/Clerk: Lists were submitted by employees. No questions from the Council.
Krystyn Turman – Pioneer Manor: Krystyn Turman was not present. No report.
Jim Varvel – Finance: Everything looks fine.
Keith Kearns – SWANN: The SWANN Board of Directors passed a resolution establishing fees for discarded tires based upon size. These fees are to become effective on November 1st, 2019.
Luke Marcy – Lister-Sage: Jim Varvel updated the Council on the upcoming fundraising event.
Richard McKay – Mayor: A written report was submitted for the Council to review.
PADD Update: Planning Commission/Community Improvement Group has a meeting scheduled for Wednesday, October 9th, 2019 at 7:00 p.m. $15,000 have been raised in donations to be put toward the Sunset Park bathroom/concession stand remodel. The Land and Water Conservation Fund Grant has been submitted to the State. The group is also working on a Greater Good Grant. The bid for the remodel came in at approximately $104,000.
Water Loss Report: No report.
211 North 2nd Street “bat house”: Tabled.
Developing Salary Schedule: Tabled to next month due to recent forthcoming wage information provided by municipalities of similar population. Kearns wished to review this new information and stated he would provide another comparison chart for Council review at next month’s meeting. Job descriptions were noted as needing to be updated. The Clerk was asked to reach out to other municipalities or the League of Nebraska Municipalities for comparable information.
Hay Springs Zoning/Housing needs: There was much discussion. Tabled until next month when the Council can discuss legal requirements and procedures with City Attorney Jamian Simmons.
Purchase of Mosquito Fogger: The Council agreed to revisit the need for a Mosquito Fogger at the appropriate weather corresponding time next year.
Approval of Claims: Varvel explained that the Payment Application #1 to Fuller Construction for the CDBG Alley Project is made to Security First Bank in the amount of $83,222.72. Security First Bank will then cut a Cashier’s Check to Fuller Construction to ensure the money does not remain in the City’s General Fund Account for longer than five days, as required by the State regarding Grant Funds. Kearns made motion, Varvel seconded to approve claims. All voted aye. Motion carried.
21st Century Equipment, LLC $550; Baker & Associates, Inc. $1,740; Black Hills Energy $936.43; Blue Cross Blue Shield $4,881.66; Bomgaars $187.94; Century Business Product $35; EMC Insurance Companies $3,890.48; Farmer’s Coop $44.49; Great Plains Communications $622.09; Hay Springs Lumber $506.95; Hip Hop $549; Ideal Linen Supply $91.27; M.C. Schaff & Associates, Inc. $8,415; MCI $68.61; Murphy Tractor & Equipment $177.33; NE Public Health Environment $3,513; Nebraska Public Power District $1,146.15; Nebraska Total Office $429.99; Northwest Rural Public Power District $414.56; One Call Concepts, Inc. $7.14; Panhandle Drilling, Inc. $30.14; Petty Cash $32.19; Pioneer Research Corporation $380.61; Quality Lawn Care $50; Sackers $149.20; Sandhills News, Inc. $276.62; Sargent Drilling Company $9,976; Security First Bank $84,575.29; Skeeter’s Napa Auto Parts $126.03; Sun Life Financial $493.70; SWANN $7,771.13; TopKote, Inc. $41,540.51; Utility Service Co., Inc. $800.62; WestCo $747.69; AFLAC $292.70; American Funds Service Company $801.01; EFTPS $2,630.17; Julie Rasmussen $707.83; NE Department of Revenue $3,226.56; Postmaster $160.
Approval of September Treasurer’s Report: Varvel made motion, Kearns seconded to approve September Treasurer’s Report. All voted aye. Motion carried.
Street Superintendent approval: Anthony “Toney” Krajewski: Varvel made motion to approve Anthony “Toney” Krajewski License Number 10215 Class A for the upcoming 2019/2020 fiscal year Street Superintendent. Kearns seconded. All voted aye. Motion carried.
Resolution #2019-10: Consider whether to pass a resolution authorizing the City of Hay Springs to engage in the direct borrowing of up to $140,000.00 from security First Bank: Varvel provided some background information to the Council. Neb.Rev.Stat. 18-201 was amended as of September 1st, 2019 and the City cannot directly borrow money from a financial institution without first passing a Resolution, as well as ensuring the term does not exceed seven years and the total annual indebtedness of the City does not exceed 20% of the municipal budget.
Kearns read Resolution #2019-10 in its entirety:
CITY OF HAY SPRINGS, NEBRASKA
RESOLUTION NO. 2019-10
A RESOLUTION AUTHORIZING THE CITY OF HAY SPRINGS TO BORROW DIRECTLY FROM A FINANCIAL INSTITUTION PURSUANT TO NEB.REV.STAT. 18-201.
WHEREAS, the City of Hay Springs, Nebraska desires to seek financing options to finance the renovation of a city alley with an updated drainage system, and the projected cost of such project has been estimated to be $379,854.50;
WHEREAS, the City of Hay Springs, Nebraska has received a grant of CDBG funds in the amount of $250,000.00, leaving the City of Hay Springs in need of additional funds to finalize the estimated costs and to provide far any additional expenses or change orders which may arise on the project;
WHEREAS, the City of Hay Springs, Nebraska currently has an existing Commercial Improvement Term Note previously authorized in 2016 to finance the construction of a new roof on the Medical Clinic and the City Hall of Hay Springs, Nebraska for the original amount of $70,405.00, and a current balance due of $48,496.84, with 10 year term and a final maturity date of 04/20/2026;
WHEREAS, the City of Hay Springs, Nebraska currently has an existing Commercial Term Note previously authorized in 2018 to finance the purchase of a wastewater system for the original amount of $90,000.00, and current balance due of $85,843.00, with a 15 year term and a final maturity date of 8/20/2033;
WHEREAS, the Pioneer Manor Nursing Home, a facility owned by the City of Hay Springs currently has an existing Commercial Term Note previously authorized in 2018 for the original amount of $914,908.03, with the current balance due of $481,616.29, with a 10 year term and a final maturity date of 11/24/2029;
WHEREAS, Security First Bank of Hay Springs, Nebraska has offered the City an additional Commercial Term Note in the amount of $140,000.000, with a 4.25% variable interest rate and a 7 year term and total monthly payments of $1,929.79;
WHEREAS, it is beneficial to the City to enter into such a direct financing agreement, and whereas the to9al amount of indebtedness attributable to the City of Hay Springs, including all previous financing arrangements, during the 2019/2020 budget year would not exceed 20% of the municipal budget of the City and is therefore authorized by Neb.Rev.Stat. 18-201;
NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF HAY SPRINGS as follows:
1. Financing the newly anticipated costs of the current alley improvement project, or the refinancing of previous debt, through traditional bond financing would be impractical;
2. Financing the newly anticipated costs of the current alley improvement project, or the refinancing of previous debt, through traditional bond financing could not be completed with the current time restraints facing the City of Hay Springs;
3. Financing the newly anticipated costs of the current alley improvement project, or the refinancing of previous debt, through direct borrowing would generate taxpayer savings over traditional bond financing;
4. The City of Hay Springs is hereby authorized to engage in the direct borrowing of up to $140,000.00 from Security First Bank of Hay Springs, Nebraska, with said loan baring an interest rate of 4.25% and a term of not more than 7 years.
5. The Mayor of the City of Hay Springs is further authorized to sign all paperwork and documentation necessary to authorize the loan as approved by the City of Hay Springs as directed herein.
PASSED AND APPROVED on this 8th day of October, 2019.
Kearns made motion to approve Resolution #2019-10. Blundell seconded. Kearns and Blundell voted aye. Varvel abstained. Motion carried.
Finance Plan for Pioneer Manor Nursing Home Alley: Security First Bank: Due to the amendment of Neb.Rev.Stat. 18-201, Varvel advised that the City does not proceed with taking out a loan to repair the Nursing Home Alley at this time. The Council was in agreement.
Hanks Well/Windmill: Aaron Taylor, Water Operator, updated the Council on the information he has received from the engineers involved with the Hanks Well site. The representative for District 8 has not honored the proposed Well site due to the conflicting Windmill. The Windmill must be outside the 1,000 feet required by the State, and currently the Windmill sits at 719 feet from the Hanks Well site. The City’s options are to abandon the current Windmill and replace it at the City’s expense, or to put in a service line at the location and establish a water allowance. Aaron stated he does not care for the second option since that requires “policing” of the allotted water allowance. Aaron received an estimate of $5,000 - $6,000 to replace the Windmill with a solar setup. The City would need to discuss these options with the Windmill owner and come to a mutual resolution that satisfies the requirements outlined by the State. There was much discussion. The Council advised Aaron to speak with the landowners offering good faith options on our part, and then the City will proceed accordingly.
Executive Session: Kearns made motion to go into Executive Session at 8:03 p.m. to discuss legal matters. Varvel seconded. All voted aye. Motion carried.
Kearns made motion to exit Executive Session at 8:13 p.m. Varvel seconded. All voted aye. Motion carried.
There being no further business, Varvel made motion, Kearns seconded to adjourn at 8:14 p.m. All voted aye. Motion carried.
Richard E McKay, Mayor
Published: October 23, 2019